[ferro-alloys.com]Western Areas has pressed the button on $32 million of early works at its Odysseus underground project as it looks to capture a window of opportunity for an expected surge in demand for nickel sulphides for electric vehicle batteries.

The nickel miner has called for tenders to refurbish existing evaporation ponds, upgrade pipelines and the 520-person mine camp and dewater the existing pit and decline as part of a staged 18-month works program.

The move comes ahead of a definitive feasibility study on the asset expected in the September quarter with a final investment decision to follow.

Odysseus is expected to have a minelife of 10 years plus with an average annual production of more than 12,000t of nickel concentrate.

Western Areas picked up its high-grade Odysseus deposit in the $24.5 million acquisition of the old Cosmos project from Glencore in 2015.

Glencore relinquished the asset as nickel prices tumbled and after having mined out the original Jubilee deposit.

Western Areas managing director Dan Lougher said the company was proud that its counter-cyclical decision to purchase Cosmos was crystallising into a significant growth project, with Odysseus to be the catalyst for its second production hub in WA.

“We are very excited by both the Odysseus project and the regional exploration potential that the greater Cosmos nickel complex demonstrates in both base and precious metals,” he said.

Mr Lougher said the decision to begin early works highlighted the company’s confidence in the project and the nickel sulphide market.

“The demand for class one nickel sulphides in the battery and electric vehicle market is forecast to grow substantially over coming years,” he said.

“We believe that Odysseus is one of a very few select nickel sulphide projects that will be coming into production in a timeframe that will enable it to deliver into that growing demand profile.”

Mr Lougher said Western Areas was experiencing strong interest from potential offtake parties and project backers.

• [Editor:王可]