Royal Nickel (TSX:RNX) wants to secure a partner for its Dumont nickel project, one of the world’s largest undeveloped nickel sulphide projects.
Located 25 kilometres northwest of Amos, Quebec, the Dumont project was issued a full NI 43-101 report last month, showing an after-tax NPV of $1.4 billion and a 19.5% after-tax internal rate of return. The company estimates an initial production of 33 ktpd rising to 50 ktpd.
"With the completion of the revised PFS and following several months of informal discussions, RNC has now entered the formal phase of the partner process during which formal discussions with interested parties will take place and prospective partners will be invited to submit proposals," said the company in a news release.
The initial capital cost is $1.1 billion. The expansion cost will be another $739 million.
The company believes that when the mine is in production, it will rank as the fourth-largest nickel sulphide operation in the world by annual production – only the mining operations at Norilsk (Russia), Sudbury (Ontario, Canada) and Jinchuan (China) will be larger.