Queensland Pacific Metals receives grant of up to $8m from Queensland Government
Grant matches award from Federal Government under the International Partnerships in Critical Minerals program, increasing the total to $16m
Proceeds from both grants will be used to ramp-up activities to prepare its TECH project for a final investment decision
Special Report: Queensland Pacific Metals has received a grant of up to $8m from the Queensland Government to help prepare its Townsville Energy Chemicals Hub for investment readiness.
The grant follows on the heels of and matches the Federal Government awarding a separate $8m grant under the International Partnerships in Critical Minerals program, taking the total grants received up to $16m.
Queensland Pacific Metals’ (ASX:QPM) TECH project in the Lansdown Eco-Industrial Precinct near Townsville will be a modern and sustainable battery materials refinery that will process imported, high-grade laterite ore from New Caledonia to produce 16,000tpa (metal equivalent) of nickel sulphate and 1750tpa (metal equivalent) cobalt sulphate.
It benefits from access to a major port, extensive industry and supporting infrastructure, engineering services and skilled labour, all of which is in the Townsville region.
Additionally, the project site is well-supported by critical infrastructure such as road, rail, gas pipeline, water pipeline, and the ability to connect to a power grid the Queensland Government sees being 50% renewable by 2030.
The project is well placed with advanced engineering finalised and pilot test work successfully producing on spec products such as nickel sulphate.
QEM also has binding offtake on 100% of its planned production and has agreements in place for up to $1.4bn in indicative funding with conditional support from key equipment suppliers and commercial banks.
Advancing to investment decision
On execution of both the Queensland and Federal government grants, the company will ramp up activities to advance its TECH project to a stage where it is ready for a final investment decision.
As part of this, QPM’s board has decided to formally evaluate the demerger of TECH from its energy business, which holds the producing Moranbah gas project, as it believes that both projects are currently undervalued in the existing corporate structure.
This will create an attractive energy-focused investment vehicle and a separate critical minerals focused entity along with associated synergies.
“Government support is essential for advanced manufacturing projects like TECH to be competitive on the global stage. We believe in the merits of the TECH Project with its gold standard sustainability credentials and world class partners,” director Dr Stephen Grocott said.
“I would like to personally thank both the State and Federal Governments for their ongoing support, particularly at a time where it is most needed for critical minerals.”
This article was developed in collaboration with Queensland Pacific Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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