Australian Nickel Finds Spur Exploration Rush - Western Mining To Expand And Build Refinery

Western Mining Corp. has announced plans to expand its mining operations at Kambalda, and to build a nickel refinery at Kwinana, near Perth, Western Australia. The refinery will use the ammonia-leach hydrogen reduction processes of Sherritt Gordon Mines Ltd., and it is expected that by 1970, when the expansion is scheduled for completion, Western will be the world's fourth largest nickel producer. Although estimates have not been finalized, the total cost is expected to be about $55 million. The mine and mill facilities at Kambalda, which began production in June 1967, are now producing at the rate of 11 million lb of contained nickel per year. The company estimates the sulfide ore reserves at Kambalda and St. Ives at 10.4 million tons averaging an usually high grade of 3.8% nickel, or about 790 million lb of contained nickel. In addition, silicate and oxidized ores have been located in both areas.