Poseidon rides rising nickel wave by resuming Black Swan

Poseidon Nickel will restart the Black Swan nickel operations in Western Australia due to stronger and improving spot nickel prices over recent months.

The 30-day nickel price has remained above US$6.50 ($9.47) a pound, which provides a basis for a sustained price level to support a restart of operations.

The Andrew Forrest-backed company will accelerate works including rehabilitation of mine escape ladderways at Silver Swan mine, rehabilitation of all accessways and structures Black Swan plant and the dewatering of the Black Swan open pit.

Estimated costs for time-critical works are $2.9 million to ensure the bulk of mine and plant rehabilitation work can proceed at an accelerated rate in an orderly and safe environment.

The dewatering of the pit will enable access from surface to the Black Swan ore body.

Poseidon interim chief operating officer David Riekie said the tailwinds from improving, sustained nickel prices created an important and critical time for the company.

“Poseidon has over the past month been de-risking and improving the bases for a positive restart decision,” Riekie said.

“Lower operating cost structure and ongoing cost savings together with optimisation processes have been our recent focus.

“These priorities have been designed to ensure that the largest portion of any benefit achieved with increasing nickel prices, translates to an improved overall stakeholder return.”

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