Panoramic Resources has awarded Primero Group with a three-year processing contract at the Savannah nickel mine in Western Australia.
The $34 million contract includes the restart, operation and maintenance of Savannah’s existing ore processing plant and non-processing infrastructure.
Panoramic has encouraged Primero to surpass the budgeted mineral recoveries.
Primero will mobilise its workforce at Savannah in the coming months with ore processing scheduled for November 2021.
The contractor will focus on Western Australia-based candidates for jobs relating to Savannah with all technical and leadership roles filled.
Primero has secured 75 per cent of employment for the Savannah contract.
The first shipment of concentrate is expected in December 2021.
“We look forward to the addition of Primero’s expertise at our Savannah operation in the coming months as they mobilise to site and further bolster the team on the ground,” Panoramic managing director and chief executive officer Victor Rajasooriar said.
“With development and production activities at Savannah underway, early mining activities have progressed well, with grade control drilling starting today.
“We look forward to a successful relationship with our business partners and are pleased to see Panoramic’s site management team and staff executing all activities safely and as planned.”
Primero is a subsidiary of NRW Holdings and first received a letter of intent for the Savannah mine in April.
The letter of intent was signed following Panoramic’s announcement to restart the Savannah mine.
Panoramic expects to produce 8810 tonnes of nickel, 4579 tonnes of copper and 659 tonnes of cobalt in concentrate for the first 12 years of production at Savannah.
Panoramic commissioned the Savannah project from 2004 until 2016 until it was placed on care and maintenance.
The company then recommissioned the mine in 2018 after the discovery of a new orebody.
It was then placed on care and maintenance in April 2020 due to operational uncertainty due to issues including COVID-19 travel restrictions in the Kimberley region of Western Australia.