Study shows massive nickel deposit in northern Ont. even more profitable than expected

Canada Nickel says a feasibility study concluded that the economics of its Crawford Nickel Sulphide Project look even better than early projections.

The bankable feasibility study, as it is called, was carried out by Ausenco Engineering Canada. It concluded that Crawford, the second largest nickel deposit in the world, is a low-cost, large-scale and long-life project that will generate $2.5 billion in net value for the company.

That amount jumps to $2.6 billion when projected carbon capture storage credits are included. Average annual production is expected to be 38,000 tonnes of nickel over the 41-year lifespan.

The project will also produce significant amounts of cobalt, palladium, platinum, iron and chromite.

The carbon footprint is being reduced, in part, because Canada Nickel is using an electrically powered mining fleet “that is expected to reduce diesel consumption by over 40 per cent compared to diesel-powered equipment,” the company said.

Further, the company has developed a process where it can capture and store significant amounts of carbon dioxide in mine tailings, “the bulk of which will be sold to third parties.”

As a result, the Crawford project will have a net negative carbon footprint and will be able to store 1.5 million tonnes of carbon dioxide every year over its 27-year peak period.

Crawford will be a conventional open pit mine/mill operation constructed in two phases. The initial phase is worth $1.9 billion, followed by a $1.6 billion expansion.

“This bankable feasibility study is a significant milestone for Crawford and a major step forward in demonstrating the value of our Timmins nickel district and its potential to anchor a zero carbon industrial cluster in the Timmins-Cochrane region,” Mark Selby, CEO of Canada Nickel, said in a news release this week.

“Crawford is poised to be a leader in the energy transition through the large-scale production of critical minerals, including nickel and cobalt, and is expected to become the sole North American producer of chromium2, while also supporting Canada’s climate objectives through industrial-scale carbon capture and storage.”

“We are fully focused on pursuing our next milestones of obtaining permits, developing a financing package, and moving towards a production decision by mid-2025, with a goal of first production by the end of 2027,” Selby added.

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Adding to the project’s feasibility are tax credits and other programs from governments intended to promote the transition to a green economy.

“Government tax credits are expected to exceed $1 billion over the project life for the scenario which includes both the critical minerals and expected carbon capture tax credits,” the company said.

Crawford is expected to produce nickel perfectly suited for use in making electric vehicles.

“The nickel concentrate is believed to be the highest-grade concentrate in the global market and thus has a wide range of potential markets, including both the stainless steel and the battery metal sector,” Canada Nickel said.

“The iron ore concentrate contains three of the key ingredients for 300 series stainless and alloy steel market and it is expected to be a suitable direct feed for North American production of that product.”