Nickel mining company FPX Nickel said that its fully owned Baptiste nickel project in central British Columbia, Canada will require $2.18bn in total initial capital (initial capex), based on the findings of a preliminary feasibility study (PFS).
The total capital costs over its life of mine have been set at $4.41bn. Apart from the initial capex, they also include a sustaining capital cost of $1.18bn, expansion costs of $763m, and closure capital costs of $284m.
FPX Nickel said that the Baptiste nickel project is estimated to bring annual before-tax cash flow of $578m during its operating years.
According to the PFS, the open-pit mining project will produce an average of 59,100 tonnes of nickel per year in concentrate over a 29-year mine life.
FPX Nickel aims to develop the nickel project in a phased manner, with an initial mill throughput rate of 108,000 tonnes per day.
Phase 1 will be followed by an expansion to 162,000 tonnes per day, which will be phase 2 of the Baptiste nickel project.
The Canadian project’s phase 1 will last for the initial nine years and phase 2 from year 10 to 29.
FPX Nickel president and CEO Martin Turenne said: “The Baptiste project represents a significant opportunity for First Nations, the governments of British Columbia and Canada, and FPX to work together to develop a project that creates substantial and sustainable benefits while protecting the environment for future generations.
“We look forward to continued collaboration with local Indigenous groups, and the provincial and federal governments to support the development of Canada’s critical minerals ecosystem and to leverage health, economic and social benefits for local communities.”
The PFS estimates a post-tax net present value (NPV) of $2.01bn for the Canadian nickel project.
It also projects a post-tax internal rate of return (IRR) of 18.6% for the Baptiste nickel project with an after-tax payback period of 3.7 years.
FPX Nickel plans to begin construction early works in early 2028, followed by full construction, and subsequent production of the first nickel in Q4 2030.
