Joint venture agreement on Comet Resources NL's Ravensthorpe project welcomed

12/11/99
Western Australian Resources Development Minister Colin Barnett described Comet Resources NL's announcement about a joint venture agreement with international minerals house Billiton Plc, as a further vote of confidence in the WA nickel laterite industry.
"WA's nickel industry continues to generate a great deal of interest from international investors and Billiton is one of the world's leading mining and metals businesses," Mr Barnett said.
"Development of Comet's $700 million Ravensthorpe project will be strengthened by the involvement of Billiton and can only lead to further investment in WA's resources sector."
The Minister said WA's position as a leading supplier of nickel to world markets was destined to improve with estimates that the State would dominate world production within five years.
Comet plans to develop a nickel laterite mine at Bandalup Hill, some 35km east of Ravensthorpe and 160km west of Esperance.
Each year the project is expected to produce 35,000 tonnes of contained nickel and 1300t of contained cobalt as concentrate for shipment to QNI Pty Ltd's Yabulu refinery near Townsville, Queensland for processing into metal. QNI is a wholly owned subsidiary of Billiton Plc.
Mr Barnett said the Department of Resources Development was working with Comet and other Government agencies to address infrastructure planning issues for the project including the provision of power, which could be delivered either by an extension of existing electricity transmission lines, a stand-alone power station on-site, or a new gas pipeline development.
The Government was also assisting in the provision of water, accommodation and improved road access to the site.
"WA's nickel industry has experienced unprecedented growth this decade, with output rising from 50,000 tonnes of contained nickel metal in the early 1990s to 143,000 tonnes in 1998," Mr Barnett said.
Forecasts by the Department of Resources Development suggest WA's output of nickel will approach 200,000t next year. This could rise to about 300,000t in 2003, elevating WA above Russia and Canada as the world's leading nickel producing area.
Media contact: Justine Whittome (08) 9222 9699