Townsville Energy Chemicals Hub base metals project, Australia – update

5th May 2023 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Townsville Energy Chemicals Hub base metals project, Australia – update

Name of the Project
Townsville Energy Chemicals Hub (TECH) base metals project.

Location
Queensland, Australia.

Project Owner/s
Queensland Pacific Metals (QPM).

Project Description
Stage 1 of the TECH project has been designed at a nameplate capacity of 1.05-million dry metric tonnes (1.6-million wet metric tonnes) a year over a 30-year design life.

Stage 1 will produce 15 992 t/y of nickel sulphate, 1 746 t/y of cobalt sulphate, 607 395 t/y of hematite pellets, 4 000 t/y of aluminium and 28 856 t/y of magnesium oxide.

Stage 2 is at the same scale as Stage 1, with the same grade of ore being processed.

The combined Stage 1 and Stage 2 operation is expected to produce 32 784 t/y of nickel sulphate, 3 579 t/y of cobalt sulphate, 1.25-million tonnes a year of hematite, 4 000 t/y of aluminium and 59 154 t/y of magnesium. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Stage 1 has a pretax net present value (NPV), at an 8% discount rate, of A$2.67-billion and an internal rate of return (IRR) of 18.4%.

Stage 1 and 2 have a pretax NPV, at an 8% discount rate, of A$4.92-billion and an IRR of 19.7%.

Capital Expenditure
Total capital expenditure (capex), including contingency, for Stage 1 is estimated at A$2.11-billion.

Stage 1 and Stage 2 combined will require an additional A$1.75-billion.

Planned Start/End Date
First production from TECH is scheduled for the fourth quarter of 2024.

Latest Developments
QPM has signed a binding ore supply agreement with New Caledonian mining company Maï Kouaoua Mines for up to 300 000 t/y of limonite ore over a ten-year term, starting in 2024.

The limonite ore will have specifications of 1.6% nickel and 0.18% cobalt.

To date, QPM has contracted up to 2.1-million tonnes of nickel ore for the TECH project.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
QPM, tel +61 7 3517 590o or email info@qpmetals.com.au.