Canada Nickel Company has recently revealed the findings of its bankable feasibility study in regards to the CCS value of its Crawford nickel project. The study has produced positive results, indicating enhanced economic benefits in comparison to the preliminary economic assessment (PEA) that excluded carbon capture and storage.
The Crawford Nickel Project is a mining project located in Ontario, Canada. Proposed by Canada Nickel Company, the project aims to establish an open-pit nickel-cobalt mine and an on-site metal mill.
The new findings of the Crawford project have revealed some promising results when compared to the initially forecasted numbers. The after-tax net present value of the project, with an 8% discount rate, has soared to US$2.6 billion, surpassing the PEA estimate of US$2.5 billion.
Similarly, the after-tax internal rate of return has also shown improvement, increasing to 18.3% with the implementation of CO2 capture technology, compared to the projected rate of 17.1%. These findings suggest that the project’s potential for profitability and return on investment is even better than previously anticipated.
The inclusion of CCS technology has proven to be of immense significance, greatly improving the overall outlook for the project. Through its CCS capabilities, the project will be able to capture and store 1.5 million tonnes of carbon annually. Additionally, there will be capacity to capture and store another 30 million tonnes of carbon from third parties.
The company will employ the in-process tailings (IPT) method of carbonization for this purpose, which involves injecting a concentrated source of CO2 into the mill’s tailings. As the tails are processed, the carbon is geologically sequestered, effectively preventing it from being released into the atmosphere.
The cost of Canada Nickel’s project is estimated at US$3.54 billion for the first and second stages, with an additional US$1.62 million for sustaining costs. It is important to note that the capital cost does not include escalation or interest.