Major construction contracts awarded for WA Cosmos Nickel Operation

The development of Western Areas’ Odysseus nickel mine in Western Australia is advancing with more works to be delivered following the award of two major construction contracts. 

“The project is ramping up methodically at considerable pace, with first ore achieved last month and extensive development and construction activities progressing, in tandem with the Company generating strong interest for offtake tenders for new nickel sulphide supply into the class 1 nickel market. 

“The award of these major packages of work to two highly regarded contractors also marks another substantial milestone in the progression of Odysseus, significantly de-risking the project both in monetary terms and project schedule,” Western Areas Managing Director Dan Lougher said. 

The first contract was awarded to RUC Cementation Mining Contractors (RUC) and will include shaft haulage, infrastructure design, construction and equipping works as part of the Hoisting Shaft Project. 

This project involves shaft survey work – which has been completed – to indicate the shaft barrel vertical alignment is within the 200mm tolerance level. Work on the Leg 2 pilot hole drilling has already commenced and is due to be completed in December and shaft reaming completed by June 2022. 

Other works to be undertaken in this project include sub-brace civil works – which is well advanced – along with the ongoing wall construction and backfilling of the box cut. Following the completion of backfilling works, shaft equipping can proceed in March 2022, while the shaft hoisting system is projected to be fully operational by June 2023. 

On the other hand, the second major contract has been awarded to GR Engineering Services. This engineering, procurement and construction contract will involve upgrading the existing nickel concentrator at the Cosmos Nickel Operations. 

Scope of works under this contract will include design for an increase in mill capacity to 1.1Mtpa from 900ktpa, which will enable the integration of production from the AM6 deposit. 

Site works are anticipated to commence in December, with majority of the upgrade works to begin in March 2022. First concentrate from the refurbished Cosmos concentrator is expected in December 2022. 

“GR Engineering has a long history of working with the Western Areas management team and have a strong track record of delivering projects for Western Areas on time and on budget. GR Engineering is excited to work with Western Areas on another important project and we are looking forward to delivering safe and successful outcomes for the project,” GR Engineering Services Managing Director Geoff Jones said. 

The Cosmos Nickel Operation is located approximately 30 kilometres north of Leinster and lies within the Leinster-Wiluna nickel camp – home to several high-quality deposits. The Odysseus Mine is the most recent deposit discovery at the Cosmos operations. 

Source: Western Areas (1, 2); GR Engineering Services; Australian Mining