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Wyloo Metals’ recently acquired nickel mines from Mincor Resources are now running at capacity, with BHP reporting that the previous quality issues are under control.

Wyloo Metals is owned by Western Australian mining magnate Andrew Forrest. It first made a $760 million on-market takeover offer for Mincor Resources in late March.

A week after Wyloo made its offer, quality issues were found after nickel supplied by Mincor to BHP’s Kambalda concentrator did not meet standards.

Mincor provided an operations and guidance update in which it was revealed BHP did not approve its request to change the supply contract so Mincor would have further flexibility around product quality standards. BHP’s refusal meant it had to withdraw its nickel production guidance.

“During the ramp-up period, Mincor has delivered off-specification product. Whilst BHP has been accepting off-specification product, both parties have been working together to explore and trial methods to better manage off-specification product going forward. This work remains ongoing,” Mincor said.

Despite the quality issues, Wyloo proceeded with its takeover plans, though made it clear the $760 million offer was its “best and final”.

“Wyloo notes Mincor’s operations and guidance update announced to the ASX and confirms that it was unaware of the material information contained within that announcement,” Wyloo said.

After a months long process, Wyloo proceeded with a compulsory acquisition of Mincor in early July after acquiring over 90 per cent of Mincor shares.

As reported in the Australian Financial Review (AFR), Wyloo Metals chief executive Luca Giacovazzi said the quality issues previously reported occurred as the Cassini mine and the Northern operations, both located in WA, were ramping up at different speeds and its ability to blend ores was compromised.

“Our blending is a lot better now. We have started to manage the arsenic issues a lot better. We haven’t had a delivery rejected by BHP since we acquired the business,” Giacovazzi told AFR. “I think they’re happy. I hope so.”