Mount Windarra nickel mine to re-open

In an agreement with GSM Mining, Poseidon Nickel is hoping it will have the Mount Windarra nickel mine, near Laverton back up and running by 2012.

The West Australian mining company is expecting to produce 10 000 tonnes of nickel per year once in production, following 10 months and $8 million worth of work to get it refurbished and back in production.

It will involve refurbishing of the underground mine down to 550 metres below the surface, where the previous mining operations ended, as well as removal of water from the mine, rock bolting and meshing of the decline and installation of infrastructure to begin operations.

Poseidon will also undertake further drilling activity from underground.

Poseidon chief executive David Singleton said a contributing factor in the decision to re-open the mine was the strong nickel price.

"Nickel prices have started getting up to around $8 and $10 a pound so the market, really from around the middle of 2010, really started to move and we are in a position now where people are very interested in funding a project of this type," he said.

Poseidon expects the project to be a long term operation.

"At the moment we believe there is a seven to ten year mine life, but the nature of these mines is you keep drilling them, as you get deeper and deeper and the mine life will continue to extend," he said.

"So, there is nothing to suggest that the mine life won’t continue to increase beyond that time."
The mine ceased operations in the early 1990’s because of low nickel prices.

 

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.