Chalice Mining (ASX:CHN) has been recognised as a ‘strategic project’ by the WA government under Roger Cook’s helm.
The stock went up last week on no news (though HotCopper users note company chief Alex Dorsch bought more shares), even after the company sold off a workers’ camp in Toodyay – right nearby its Gonneville project.
The company called off the rigs earlier this year when nickel prices tanked – that metal being a large part of Gonneville’s underlying value proposition.
Whether its status as a ‘strategic project’ will actually change anything remains to be seen, despite the company now looking at a faster process when it comes to environmental approvals.
The status “provides formal recognition of the strategic value of the Project and its potential to deliver significant economic and energy transition benefits for Western Australia and the region,” Chalice wrote on Tuesday, but the value of ‘formal recognition’ is questionable.
Higher nickel prices would probably help far more.
Also worth noting is that Chalice’s announcement spruiks the government’s new “Green Energy Assessment” unit – this cynical finance journalist cant help but think there’s probably some cross-promotion going on in Tuesday’s announcement.
“We are grateful for the recognition and JTSI’s ongoing case management support. Approval as a Strategic Project under the Lead Agency Framework recognises the greater engagement with all parts of the WA Government as we progress regulatory approvals,” Chalice chief Alex Dorsch said.
“It’s also pleasing that environmental approvals for the Gonneville Project will be supported by the Green Energy Assessment Unit, created as part of the streamlined approach to the assessment of Green Energy projects announced by Premier Cook late last year.”
CHN last traded at $1.23/sh.