Western Areas ltd BFM 82

WESTERN AREAS LTD

MORE THAN NICKEL AND DIME

WESTERN AREAS LTD

WE LEARN HOW WESTERN AREAS’ NICKEL MINING OPERATIONS COULD BE THE FOUNDATION OF A SUSTAINABLE FUTURE.

MORE THAN NICKEL & DIME PROJECT MANAGED BY: NEIL STOWE In Western Australia, this year Western Areas Ltd is celebrating its 20th anniversary, and it’s been a busy couple of decades.

W

e’ve been listed on the ASX since July 2000, over that time we have opened up two of our current operations at our Forrestania operations, namely, Flying Fox mine and the Spotted Quoll mine,” says Dan Lougher, CEO of the company. “Both operations produce some of the highest-grade nickel sulphides in the world.”

As well as these operational sites, Western Areas is also deep in the development process for a new mine that should begin to see production towards the end of this year.

“We have another operation we’re currently developing called Odysseus, which is located at the Cosmos operations. It will have a lifeof-mine of over ten years, an order of 211,000 nickel tonnes in reserve, with first ore production expected around September 2021,” Lougher tells us. “We purchased the site in October 2015 from

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Glencore. We’re fundamentally an explorer, finding new mines and developing the mines independently, and have been doing so for 20 years. We sell a high-grade nickel concentrate grading around 15% nickel. Our contracts are with BHP Nickel West as well as Jinchuan, the largest Chinese nickel cathode producer.”

A 2020 ODYSSEY

Lougher considers the purchase of the Odysseus site a great deal for Western Areas, and one he’s keen for the company to build on.

“We purchased Odysseus as part of the Cosmos complex in 2015. It was previously run by Jubilee Mines, a small junior in the late 90s. They sold that on and we purchased it for around A$24 million, so we got a bargain,” he says proudly. “We have an excellent street address for nickel sulphides, between two Nickel West operations, so it’s got extensive infrastructure.

We can access grid power and gas. In addition, we have a 550-person camp and a concentrator which is currently under care maintenance that will soon be upgraded to a 900-ore-

tonnes per annum capacity.

We’ve got the Odysseus orebodies and adjacent to that AM6 where the combined nickel reserve position is. So, in a nutshell, we’ll be mining there well into the 2030s!”

As well as developing this new site, Western Areas is pushing to transform its mining operations to fit into a greener, more sustainable future.

“We’ll certainly be going into sustainable power for the long-term with a combination of solar, gas and potentially wind turbines, to the order of 25 megawatts,” Lougher says. “We’re also currently developing a hoisting shaft that will be one of the few developed in Western Australia right now.

That will be used for hoisting ore and waste rock from around 1km depth. So, the consequence of that will be we don’t have to use a significant amount of diesel trucks, and we’ll need less ventilation and have fewer refrigeration requirements for cooling the air.”

Western Areas is pushing forward with new Environmental and Social Governance, making sustainability part of the company’s day-to-day activities.

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WESTERN AREAS LTD

Dan Lougher, CEO of Western Areas Ltd.

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• Surface core drilling specialist based in Western Australia • Deep directional drilling: wedging, navi, multiple intersections • Shallow angled drilling to -30o • Personalised service

www.westcore.com.au

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Email: admin@westcore.com.au

Tel: +61 8 9368 4093

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WEST CORE DRILLING – THE QUALITY CORING COMPANY

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WCD is a Western Australia based surface diamond drilling contractor, established in 2006.

At WCD we consider we have the most flexible fleet of surface core rigs in WA having undertaken contracts from the middle of salt lakes to the top of mesas, from the coastline of the Southern Ocean to the ranges of the Kimberley.

We offer the full range of services from geotechnical to deep directional drilling using wedging and navi drilling for both hole control and multiple intersections.

We also provide our clients with the option of testing those hard to access areas around existing infrastructure such as flooded pits or waste dumps with shallow angled drilling. We can drill at angles of -30o, making drilling otherwise inaccessible areas straightforward.

We are proud to have been contracted by Western Areas for the last two years to undertake their surface diamond drilling requirements at Cosmos, Odysseus and Forrestania Regional. This has included deep exploration drilling with multiple intersections, geotech holes including break-through holes with tight hole tolerances and other site investigation drilling. www.westcore.com.au

BARMINCO Barminco is one of the world’s largest hard-rock underground mining service providers with a deep capability, comprising of our people, our expertise, equipment, systems and processes, developed over three decades of experience in Australasia, Africa and North America.

Barminco currently employ over 4,500 people, at 23 projects in eight countries and while our alumni are renowned for being among the best miners in the world, it’s the people we retain who define our culture and truly give us an experience edge.

Our purpose is to create enduring value and certainty for our clients and we are proud that Western Areas is one of our longest running continuous relationships. The recently signed five-year contract for Western Areas’ newest project – Odysseus –will extend the company relationship to over 20 years.

Barminco have worked with Western Areas for the full life of their current operating mines Spotted Quoll and Flying Fox in Western Australia - providing development, production, pastefill and diamond drilling. We continue to look for opportunities to work together with Western Areas to improve efficiencies and reduce costs across operations.

Barminco is part of the Perenti Group, Australia’s second largest integrated mining services provider. Perenti operations span four continents and 13 countries with a global workforce of more than 8,000 employees. Perenti’s culture is underpinned by a set of principles that drive the way they work, their actions and behaviours.

“Barminco and Western Areas have the strongest of partnerships, built on honesty, trust and working together as a team to resolve issues, highlight opportunities and optimise performance. We look forward to being a part of Western Areas’ bright future.”

Paul Muller, Chief Executive Officer, Barminco www.barminco.com.au

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“WE NOW HAVE A POSITION WHERE WE HAVE PROBABLY ONE OF IF NOT THE BEST PROJECT BEING DEVELOPED WHICH WILL SEE US WELL INTO 2030.”

“When you design and run mines, major stakeholders expect us to follow guidelines and use our business practices to help build a better and greener world,” Lougher says.

“All of these concerns play a part in our ongoing mine designs.”

Mining is not an industry many immediately associate with sustainability, but the industry has a crucial role to play in building a sustainable future.

“With mining, there’s a view that it’s dirty, but copper and nickel and other minerals we produce are used in creating that greener world,” Lougher explains. “There are parts of the community that believe we’re

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WESTERN AREAS LTD

not doing enough, but we’ve got projects, we’re doing more to improve efficient extractability of the ore, so it doesn’t use as much energy. Every little bit helps.”

This push for a more sustainable future also opens up a promising market for the minerals Western Areas is mining.

“Iron ore is still going strong.

Gold is going stellar, and of course, copper and other base metals like nickel are seeing growth on the back of the technology of electric vehicle batteries,” says Lougher.

Western Areas is wellpositioned to meet this growing demand with two very highgrade operations in production, a very strong exploration skillset

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WESTERN AREAS LTD

internally and a demonstrative track record of discovering and building operations.

“We now have a position where we have probably one of if not the best project being developed which will see us well into 2030,” Lougher tells us. “That’s an exceptional record. We are an explorer, builder, miner, and we’ve got some great contracts coming into the market for our highgrade nickel concentrate.”

A CULTURE OF SUCCESS

This record wouldn’t have been possible without an exemplary team, and talking to Lougher it’s clear he’s proud of Western Areas’ technical group.

“We pride ourselves in doing as much work internally as possible, not relying on external consultants,” he tells us.

This team is the result of a long-term investment in the staff of Western Areas.

“We have a culture that has been developed over the last 20 years where we have a significant portion of our staff staying with the company for ten

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years or more,” says Lougher.

“I’ve been here for over 14 years. It’s a good place to work with a low turnover but for mining and other key activities such as exploration drilling, we rely on contract staff.

Looking forward, Lougher is looking to take that team from strength to strength.

“We’ve got two main operational mining hubs which have got significant amounts of nickel in the ground.

We’re innovating with our introduction of heap leaching,” he says. “We have a mineral recovery enhancement project using bacteria and acid to

extract nickel from difficult ores.”

Looking forward, Cosmos will become the growth and future of the company. The Odysseus site will be at the centre of this growth, as Lougher tells us, “We’ll be developing Odysseus, and the Cosmos operation as it has a large amount of nickel with plenty of room for exploration and further discoveries. Once we’re up and running towards the end of the next year, that will provide significant growth for the company. We think it’s a great company, 20 years in the making and at least another 20 years to go.”

“WE’VE GOT TWO MAIN OPERATIONAL MINING HUBS WHICH HAVE GOT SIGNIFICANT AMOUNTS OF NICKEL IN THE GROUND. WE’RE INNOVATING WITH OUR INTRODUCTION OF HEAP LEACHING. WE HAVE A MINERAL RECOVERY ENHANCEMENT PROJECT USING BACTERIA AND ACID TO EXTRACT NICKEL FROM DIFFICULT ORES.” BUSINESS FOCUS MAGAZINE | 7

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