Andrew “Twiggy” Forrest’s Poseidon Nickel will re-open the historic Windarra nickel mine in Western Australia.

Poseidon on Tuesday announced that a study had confirmed the viability of the company’s $197 million Windarra Nickel Project, which is expected to produce an average of 9,600 tonnes annually over its 10-year life.

The nickel deposit, 260 kilometres north east of Kalgoorlie, was discovered in 1969 and operated as a mine between 1974 and 1995.

Mr Forrest, Poseidon’s chairman, said the reopening of the nickel mine, which had the potential to operate beyond its predicted 10-year life, ensured the long-term growth of the company.

“The definitive feasibility study confirms a strong future for Poseidon as a low-cost producer of nickel in Australia with a mine life potentially well beyond a decade,” Mr Forrest said.

Poseidon managing director David Singleton said the company would move immediately to complete financing of the project and quickly commence construction and production.

“We are in the fortunate position of expecting to have two-thirds of the required capital items secured in signed contracts by the time financing is completed,” he said.

“We see the timing of the project as significant, with Windarra’s development in parallel with widely held expectations of a substantial recovery in nickel price and demand.”

An additional gold-processing facility at the site is estimated to produce 45,000 ounces of gold in the first three years.

The project is anticipated to deliver earnings before interest, tax, depreciation and amortisation of $1.75 billion over the decade.

At 1417 shares in Poseidon Nickel were up one cent at 20 cents.