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

Location
The project will be located in northern Queensland, in Australia.

Project Owner/s
Pure Minerals.

Project Description
An updated prefeasibility study (PFS) has confirmed that the TECH project has the potential to deliver excellent economic returns and remain financially robust in downward price cycles.

The updated PFS envisages the development of a new hydrometallurgical metals processing facility in Townsville producing nickel sulphate, cobalt sulphate and high-purity alumina (HPA) from imported, high-grade lateritic ore from New Caledonia.

The process to produce battery-grade nickel and cobalt sulphate and HPA from the imported New Caledonia ore is conducted in three parts.

Part 1 includes the ore processing plant, which will leach ore to produce an intermediate mixed hydroxide precipitate (MHP).

Part 2 includes the construction of sulphate refinery, which will take the MHP and upgrade it into nickel and cobalt sulphate.

Part 3 includes the development of an HPA refinery, which will take aluminium hydroxide from the ore processing plant and upgrade it to HPA.

The ore processing plant will use a nitric acid leach process, or the DNi process, patented by Direct Nickel Projects, with modifications to suit the expected specifications of the ore supply.

Ore processed at steady state is estimated 565 714 wet tonnes a year, with production estimated at 2 398 t/y nickel sulphate, 3 097 t/y cobalt sulphate, 4 000 t/y of 4N HPA, 327 665 wet metric tonnes of hematite and 20 079 t/y of magnesia. The plant will have a design life of 30 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an updated PFS spot case post-tax net present value of A$1.47-billion and an internal rate of return of 30.7%, with a payback of 4.3 years.

Capital Expenditure
Capital expenditure, excluding contingency, is estimated at A$554-million.

Planned Start/End Date
Not stated.

Latest Developments
The next steps are to complete the pilot plant testwork, the definitive feasibility study and obtain all required development approvals.

Key Contracts and Suppliers
Lycopodium (ore processing plant and sulphate refinery) and Simulus Engineers (HPA refinery), with coordination and support from the QPM owners’ team and other technical contributors; SMT, SMSP, Xenith (geology and mining); DNi, CSIRO, BWHC, Prudentia (process and engineering) and Saunders Havill Group (environmental and permitting).

Contact Details for Project Information
Pure Minerals, email info@pureminerals.com.au.