PERTH (miningweekly.com) – ASX-listed Queensland Pacific Metals has inked a binding ore supply agreement with New Caledonian mining company Maï Kouaoua Mines (MKM) for up to 300 000 t/y of limonite ore over a ten-year term, starting in 2024.
The limonite ore would have specifications of 1.6% nickel and 0.18% cobalt.
“I am pleased to enter into this agreement with MKM. We look forward to working with them and the other New Caledonian mining companies to maximise clean ore supply. We now have agreements with four mining companies in New Caledonia, strengthening our ties to the country and increasing our security of ore supply,” said Queensland Pacific MD Dr Stephen Grocott.
To date, Queensland Pacific has contracted up to 2.1-million tonnes of nickel ore for its Townsville Energy Chemicals Hub (TECH) base metals project, in Queensland, providing it with security to meet the nameplate capacity requirements of 1.6-million tonnes a year.
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 estimates that the project will 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 estimates that the project will 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.