Poseidon Nickel has signed an agreement with Pure Battery Technologies (PBT) to investigate the possibility of processing its nickel at a battery materials refinery in Kalgoorlie, Western Australia.
PBT, which is the owner of the precursor cathode active material (pCAM) refinery in Western Australia, is targeting initial production of up to 50,000 tonnes per annum.
The agreement was formed under a memorandum of understanding between the two companies that will look to evaluate and establish the refining hub.
Poseidon will provide specifications and production volumes of nickel concentrate from its projects as the refinery’s potential base feed.
“We look forward to working with PBT to determine if our potential concentrate production could be feed for PBT’s proposed refinery, should we decide to proceed with development of our projects,” Poseidon managing director and chief executive officer Peter Harold said.
“This could be a great way for us to improve the payability of the nickel in our concentrates and improve the margins of our projects.”
The aim of the partnership is to reach a definite agreement that will outline how both companies will develop a regional supply chain from mine to concentrate.
PBT is an Australian company that also operates a nickel and cobalt refinery in Germany. The concentrate from PBT’s Kalgoorlie refinery will be used for the battery manufacturing markets.
Poseidon is exploring and developing three Western Australian sites – the Windarra, Black Swan and Lake Johnston nickel projects, which have a combined resource base of around 400,000 tonnes of nickel and 180,000 ounces of gold.
Poseidon announced in September it is set to restart Black Swan after it agreed to refurbish a 1.1-million-tonne-per-annum concentrator.
The company’s scoping study revealed the capital cost of the circuit refurbishment is $22. 1 million.
Black Swan has a resource base of close to 200,000 tonnes of nickel, which Poseidon anticipates will deliver value based on rising nickel prices.