Some information on West Musgrave from a few different...

Some information on West Musgrave from a few different sources.
While it is a nickel and copper mine, it is interesting to see the nickel grades, total reserves, mine life, and the renewable power sources being built. I believe capex was estimated at $1.7b

West Musgrave is located approximately 1,300km north-east of Perth in Western Australia and 1,400 km northwest of Adelaide; near the intersection of the borders between Western Australia, South Australia and the Northern Territory.


The future project will consist of two large open cut mines and a process plant utilising dry grinding and flotation processing techniques to produce separate nickel and copper concentrates for sale to downstream processing facilities. The processing facility capacity was studied at both 10 Mtpa and 12 Mtpa of ROM ore with an average grade of 0.33% nickel and 0.36% copper to produce an approximately 220 ktpa of nickel concentrate and 110 ktpa of copper concentrate based on the 12 Mtpa throughput case.

The studies investigated the latest innovate equipment and processes for the project which now includesry Grinding of the ore to 165 microns utilising the Loesche Vertical Roller Mill (VRM). This will be the first time this technology has been utilised in the mineral industry in Australia. Woodgrove flotation technology is proposed for the bulk flotation circuit utilising their Direct Flotation Reactor (DFR) technology. This technology reduces plant foot print and decreases operating cost by reducing power requirement and flotation reagent consumptions. Bulk Separation Flotation circuit to allow for a coarse primary grinding size of 165 microns leading to lower power requirements. Renewable power generation for the project is investigating the use of both wind and solar power generation to achieve high renewable power penetration for the project.

What we own

The Group owns a 2.0% NSR royalty over the West Musgrave project (‘West Musgrave’) in Australia. Average annual production is expected to be approximately 35Kt of nickel and 41Kt of copper over the first five years of production and 27Kt of nickel and 33Kt of copper thereafter. Total reserves are estimated at 270Mt at 0.31% nickel and 0.34% copper.

Operation

West Musgrave is a large-scale nickel sulphide and copper development project located in Western Australia, approximately 1,300km north-east of Perth. The mine is owned and operated by BHP.

Why we own it

The West Musgrave project is a low cost, sustainable way of accessing two commodities, copper and nickel sulphide, that will play a vital role in the energy transition. The mine is expected to be relatively low cost and has strong sustainability credentials. Renewable sources of energy are expected to provide 80% of the power, with plans to increase it to 100%, which will make it one of the largest fully off-grid renewable powered mines in the world. Water requirements at the site can be met from a local aquifer system and a bore field.

Progress

OZ Minerals (the former owner) took a Final Investment Decision in September 2022 to construct the West Musgrave Project. Construction activities commenced in November 2022 and OZ Minerals released the West Musgrave Mixed Hydroxide Precipitate (MHP) Study that confirmed the technical and commercial opportunity of producing a high quality and high grade MHP nickel product, with the potential to deliver a significant value uplift to the West Musgrave project economics.

In May 2023 BHP completed the acquisition of OZ Minerals and continues the construction phase and is targeting first production in 2026.

Key facts

80%

The project will be 80% powered by renewable sources of energy, with plans to take it to 100%, which will make it one of the largest fully off-grid renewable powered mines in the world

24 years

With a 24-year mine life and further extension potential, the site plan is for a mineral processing plant with a nameplate capacity of 13.5Mtpa

2026

First production is targeted for 2026