Andrew ‘Twiggy’ Forrest’s Poseidon Nickel will reopen the Windarra nickel mine in Western Australia.
Poseidon have announced that a study confirmed the viability of the company’s $197 million Windarra Nickel Project.
The mine is expected to produce an average of 9,600 tonnes annually over its 10-year life span.
The deposit, 260 kilometres north east of Kalgoorlie operated as a mine between 1974 and 1995.
Forrest, Poseidon’s chairman, said the reopening of the nickel mine would set up the company as a low cost nickel provider.
"The definitive feasibility study confirms a strong future for Poseidon as a low-cost producer of nickel in Australia with a mine life potentially well beyond a decade," Forrest said.
Poseidon managing director David Singleton would move quickly to commence construction and production.
"We are in the fortunate position of expecting to have two-thirds of the required capital items secured in signed contracts by the time financing is completed," he said.
"We see the timing of the project as significant, with Windarra's development in parallel with widely held expectations of a substantial recovery in nickel price and demand."
An additional gold-processing facility at the site is estimated to produce 45,000 ounces of gold in the first three years.
The West Australian reports that the project is anticipated to deliver earnings before interest, tax, depreciation and amortisation of $1.75 billion over the decade.