OZ Minerals is not a nickel producer yet, but the company has big downstream aspirations for its West Musgrave copper-nickel project.
OZ has completed a study exploring the viability of producing a mixed hydroxide precipitate (MHP) product from the Western Australian project, with high nickel content and ultra-low impurities.
This would involve an extra phase of processing through a pressure oxidation (POX) and precipitation method. OZ built a pilot plant to verify the process, with the next step a potential feasibility study.
OZ said the MHP project would deliver a value uplift through increased road safety and reduced transportation due to an approximate 65 per cent reduction in the delivery of the non-valuable component of the nickel concentrate. This would also reduce costs and carbon emissions.
The MHP product also has potential for improved payability for the contained metal and could be an asset to the battery value chain given its traceability.
OZ chief executive officer Andrew Cole said the study was validating for the company.
“An important technical milestone was achieved during the study with a successful pilot plant, confirming the flowsheet and producing an MHP product that is high in nickel content with very low impurities, making West Musgrave MHP a high-quality product when benchmarked against other MHP products in the market today,” he said.
“There has been strong interest from potential customers in the MHP product and we have become increasingly confident that MHP will be one of the preferred feedstocks for battery manufacturers as the world looks to step up its decarbonisation journey in coming years.
“The work done to date is to a level that allows us to commence a feasibility study when ready. A decision on project next steps will be considered in parallel with the current strategic partnership (minority interest) process for the West Musgrave project.”
OZ Minerals has been evaluating the possibility of selling a minority stake in West Musgrave, which would help it fund the project’s $1.7 billion capital outlay.