Development of Savannah Nickel Project in WA ramps up

Major development works on the Savannah Nickel Project in Western Australia is now underway with mining activities undertaken by Barminco – a subsidiary of Perenti Global Limited. 

Barminco signed a Letter of Intent with Panoramic Resources Limited in April 2021 for a $280 million four-year contract, which has now been finalised. 

Following the signing of the Letter of Intent, Barminco began mobilising on site and commenced early works ahead of schedule. With the contract finalised, the company is expected to ramp up development and production works over the next six months to reach “full run rate of revenue” in early third quarter FY2022. 

“We look forward to working together with the team at Panoramic to develop what we all expect will be, Australia’s next long-life nickel producing mine. 

“Despite the challenging labour market conditions in Western Australia, we have been successful in mobilising a labour force of approximately 110 highly skilled underground employees. We expect this to increase to 170 as the project ramps up. Securing this labour force has enabled us to commence early works ahead of schedule. We look forward to providing a safe and efficient service while delivering value and certainty to Panoramic,” Perenti Managing Director and CEO Mark Norwell said. 

Panoramic Resources initially planned to commence mining in August of this year, but due to the early arrival of new equipment on site as well as the seamless recruitment of technical staff and underground operators, underground operations began ahead of schedule and in accordance with the Letter of Intent signed earlier in the year. 

Development of the mine and production works are already underway, and additional equipment and workforce are anticipated to come in as works ramp up on site. 

Ore processing is due to begin in November 2021, with first concentrate shipment from the Savannah mine targeted in December. 

“During the past two months we have built our owners team from less than 10 to more than 30, including the recruitment of senior mining engineering and geological roles which has been really heartening in a tight labour market across the sector. 

“It has been fantastic to see both Panoramic and Barminco teams quickly establish a working culture that sets up the Savannah mine for success. The teams have been working tirelessly to mobilise, commission, induct and now operate in a safe and well-planned manner. 

“The building of an ore stockpile on the surface has commenced and we look forward to achieving our targeted 100,000 tonnes on the surface prior to turning on the processing plant. The project is now building strong momentum towards concentrate production at a time where favourable commodity market dynamics for nickel and copper are being experienced,” Panoramic Resources Managing Director and CEO Victor Rajasooriar said. 

The Savannah Nickel Project is expected to have a mine life of 12 years and the overall development to create 320 jobs. 

Source: Perenti Group; Panoramic Resources (1, 2); Australian Mining