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Founding Western Areas managing director Julian Hanna with Lougher and then WA Mines Minister Norman Moore at the opening of the Cosmic
Boy concentrator in 2009

The development of nickel pig iron (NPI) EVs and nickel. Western Areas had put its foot on one of
techniques led to a fundamental realignment “I think that because nickel is well un- WA’s only undeveloped nickel reserves.
of global nickel supply with Chinese users derstood, it is traded on the LME, people “Buying Cosmos in 2015 from Glencore
preferring cheap, unprocessed laterite ore couldn’t see the impact EVs would have on [plc] during a period of high volatility in nickel
from the Philippines, Indonesia and New the market,” Lougher said. “Lithium had run, and then taking Odysseus to where it is,
Caledonia over higher quality, higher priced cobalt had run, graphite had run, but they I believe is quite an achievement from this
nickel sulphide out of Australia and Canada. were all small markets. company,” Lougher said.
“It is, without doubt, the biggest structural “I remember doing a presentation in Lon- Striking a $30 million deal for an asset
shift in the history of the industry,” Lougher don and people laughed at my comments which has eventually led to a $1.26 billion
stated. about EVs, but it soon caught on. merger demonstrates the power of a strong
Throughout it all, “The use of nickel business development strategy, even during
Western Areas man- in EVs is just as sig- fraught times.
aged to keep itself nificant to nickel as “The lesson to take is that you’ve got to
moving, thanks to its NPI was. And it was keep looking,” Lougher said. “Business de-
low-cost mining and definitely required velopment is probably underrated. You al-
innovative offtake ar- otherwise things ways need a group within the company to
rangements. Unlike would’ve got very keep on looking for projects.”
many of its WA nickel tough for Western Ar- So, will that thirst for business develop-
peers, the company eas and other nickel ment lead Lougher to another executive
wasn’t locked into sulphide miners. role?
100% offtake with “It has taken a “That is the big question – what is next?”
BHP Nickel West. while for people to he said. “It is a shock to the system after 42
That allowed it to grasp the technologi- years of employment to not have a job to go
arrange a series of cal changes. There to. I’m already on the board of Perseus Min-
independent offtake are multiple technol- ing [Ltd] as a non-executive but I think I’ve
contracts with Chi- ogies and some with got another 5-6 years in me yet.
nese stainless steel very little nickel and “I hope to give back to the industry either
companies such as Western Areas director Natalia Streltsova at different products. It as an executive or through non-executive
Jinchuan and Tsing- the Australian Nickel Conference is a very difficult plat- roles that require the skills I have, and I have
shan. form to understand got quite a bit to give back to the industry.
Those frequent visits to China also gave what it all means. It has taken a while to have There is no secret that industry struggles
the company an early insight into the final a meaningful impact on price. with getting graduates so I would like to play
twist in the Western Areas history book. “But, at $US28,000/t we are smiling and a role in bringing the mining story back to
“We could see that in China, the EV the- that EV demand is important and will be im- schools and show the role mining has to
matic was gathering pace,” Lougher said. portant for several years to come.” play in the creation of a green future.”
At that stage, while Tesla was beginning The Western Areas team could afford – Dominic Piper
to make headlines in the West, few investors to smile because by the time the EV-nickel
or even analysts had made the link between connection had emerged on public markets,

Page 46 JULY 2022 aUSTRaLIa’S PaYDIRT