Lycopodium Secures Design Engineering Contract for Hydrogen Sulphide Plant in Kalgoorlie Nickel Project
Key Ideas
- Lycopodium, with a market capitalization of $447.87 million, secured a $5.4 million contract for the design engineering of a hydrogen sulphide plant for the Kalgoorlie Nickel Project in Western Australia.
- The hydrogen sulphide gas from the plant will be used to produce a high-purity nickel and cobalt sulphide product, essential for electrolytic nickel and cobalt, nickel powder, and nickel sulphate used in lithium-ion battery production.
- The Kalgoorlie Nickel Project's vast nickel-cobalt resources and the strategic opportunity for Lycopodium to support its development position it to become one of the largest nickel-cobalt producers in Australia.
- Lycopodium specializes in integrated engineering construction and asset management solutions, emphasizing delivering complex projects and feasibility studies in the mining sector.
Lycopodium, listed on the ASX as LYL, has secured a Definitive Feasibility Study (DFS) contract for designing a hydrogen sulphide plant in the Kalgoorlie Nickel Project – Goongarrie Hub in Western Australia. The project, an asset of Ardea Resources’ subsidiary Kalgoorlie Nickel, is managed by Lycopodium. The company aims to complete the DFS by the end of H2 2025 as scheduled under the $5.4 million contract. The hydrogen sulphide gas produced will precipitate a high-purity nickel and cobalt sulphide product crucial for various nickel and cobalt derivatives used in lithium-ion battery production. Lycopodium's Managing Director sees this as a strategic move to support the development of Kalgoorlie Nickel's asset, which is expected to be a major nickel-cobalt producer in Australia. The project encompasses significant nickel-cobalt and critical mineral deposits, with the Kalgoorlie Nickel resource totaling 6.1 million tonnes of nickel and 386,000 tonnes of cobalt, and the Goongarrie Hub resource totaling 4 million tonnes of nickel and 250,000 tonnes of cobalt. Lycopodium's expertise lies in providing engineering construction and asset management solutions, catering to the intricacies of multidisciplinary projects and feasibility studies in the mining industry.