PERTH (miningweekly.com) – ASX-listed Queensland Pacific Metals (QPM) has received all of the primary approvals for the construction of its Townsville Energy Chemicals Hub (TECH) base metals project, in Queensland.
The company on Thursday said it had been granted a development permit under the Planning Act and environmental authority under the Environmental Protection Act. Coupled with the approval received in November from the Australian federal government, QPM now has all primary approvals required to begin construction of the TECH project.
“I’m delighted that all key permits have now been received for the TECH project, which is a major milestone for QPM. It is also exciting to see activity happening at Lansdown and we thank the Townsville City Council (TCC) for the work it has put in to making this eco-industrial precinct a reality,” said MD Dr Stephen Grocott.
TCC will construct key supporting infrastructure for the TECH project, including roads and water supply, with construction of an access road connecting the existing Jones Road to the northern boundary of QPM’s site now having started. Subject to weather conditions, construction of the access road is expected to be complete in the first quarter of 2023, facilitating QPM’s ability to start preliminary site establishment work, of which planning is now under way.
The Stage 1 TECH project is based on a nameplate capacity of 1.05-million tonne a year throughput rate, with a ramp-up time of 2.25 years and a design life of 30 years. The Stage 1 project would produce some 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 some 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 some $1.06-billion, at an operating cost of $515-million, and earnings before interest, tax, depreciation and amortisation of $546-million.