QPM signs offtake agreement

23rd March 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – ASX-listed Queensland Pacific Metals (QPM) has inked an ore supply agreement with New Caledonia’s Société Minière Georges Montagnat (SMGM).

The 10-year agreement, which will start in 2024, will see Queensland Pacific Metals supply up to 200 000 t/y of limonite ore from its Townsville Energy Chemicals Hub (TECH) base metals project, in Queensland.

“I am pleased to enter into this agreement with SMGM. We now have agreements with three mining companies in New Caledonia, strengthening our ties to the country and increasing our security of ore supply,” said QPM MD Dr Stephen Grocott.

“SMGM has been a strong supporter of the TECH project for a long time and we look forward to having a long-term partnership that delivers value to both companies.”

The offtake agreement is subject to QPM making a final investment decision on the TECH project.

The Stage 1 TECH project is based on a nameplate capacity of 1.05-million tonnes a year throughput rate, with a ramp-up time of 2.25 years and a design life of 30 years. The Stage 1 project will produce 15 992 t/y of nickel sulfate, 1 746 t/y of cobalt sulfate, 607 395 t of hematite pellets, 4 000 t/y of aluminium, and 28 856 t of magnesium oxide.

The advanced feasibility study estimated that the project would require a capital investment of A$2.1-billion, with the Stage 1 operation to have a post-tax net present value of A$1.6-billion and an internal rate of return of 15%.

The study estimated that the project would generate average revenue of $1.06-billion, at an operating cost of $515-million, and earnings before interest, taxes, depreciation and amortisation of $546-million.

Edited by Creamer Media Reporter



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