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the end of last month. It is one of three op- ticipating inflation to creep into some of the
tions now being considered after Poseidon costs previously estimated by GR, as well as
contracted GR Engineering Services Ltd to a potentially longer time to complete all the
investigate increasing the throughput of the refurbishment works, but assured investors
concentrator to 2.2 mtpa as well as restart- it would all be within a reasonable range.
ing the operation immediately at that name- “We got a quote in December last year
plate capacity. of $22 million, but we already know it will
Harold said it was unusual to have multi- be higher than that,” he said. “We’ve also
ple options on the table. had a slight change in scope – we’re look-
“Normally you only have one option which ing at repurposing the 150,000 tpa mill for
is you build the plant and optimise the size of the regrind mill – so there will be some cost
it for the right mining, whereas we’ve got the escalation, but that’s the market. We don’t
beauty of being able to start off slow and fill think it’s going to have too much impact on
Peter Harold
it up,” he said. the economics.
“The other luxury we have in going from “When GR looked at it last time, they said
PBT was earlier this year awarded a $120 1.1 mtpa to 2.2 mtpa is you’re not talking six months [to restart operations] but they
million grant from the Federal Government’s about a lot of extra capital. With the 1.1 might say it’s going to take longer. Obviously
Modern Manufacturing Initiative (MMI) to mtpa, what you’re looking at is refurbishing getting hold of people and other stuff will be
build the proposed $420 million pCAM hub. the SAG mill, the float circuit and two of the a challenge, but we’re starting to address
Harold said it was no coincidence the three filters that are already there, and then some of these things now. It might be tough
pCAM hub was set to be built just 50km from for the 2.2 mtpa it’s the SAG mill and ball mill, out there today, but next year could be less
Black Swan. more flotation and third concentrate filter. tough, we’ll find out.”
“For PBT, clearly it makes sense to locate “We don’t know what the number is yet, Meanwhile, Poseidon has signed a bind-
the project in WA, and given the amount but we’re certainly not talking double the es- ing heads of agreement with Green Gold
of nickel sulphide that’s in the vicinity of timate for what it is for 1.1 mtpa to go up to Projects Pte Ltd for the processing of gold
Kalgoorlie, it absolutely makes sense to put 2.2 mtpa. And the other thing is I reckon a tailings at Windarra, potentially providing
it there, I can see why they did that,” he said. 2.2 mtpa plant today would cost you north the company with cash flow to put back into
“As a result, it’s going to lower the hurdle of $250 million to build, with all the associ- Black Swan.
for a lot of people to get projects up and run- ated infrastructure, the roads and the tailings – Michael Washbourne
ning.” dam and all that stuff. So that’s the benefit
The long-awaited BFS to restart Black we have.”
Swan as a 1.1 mtpa operation was due at Harold said the Poseidon team was an-

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