Refinery plans delayed
THE company behind plans for a $1bn-plus battery metals refinery at the Lansdown EcoIndustrial Precinct has delayed a feasibility study to do test work on some of the technology and equipment it will use.
Queensland Pacific Metals CEO Steven Grocott says while they want to advance to a Final Investment Decision as quickly as possible, having a “modest delay” which delivers a high level of “derisking” is a win for the project.
The delay pushes back an expected completion of the feasibility study from mid this year to the December quarter.
It comes as the state Labor government this week announces a $26m commitment to develop water infrastructure at Lansdown to assist projects like QPM’S, as well as $12m in funding to upgrade the precinct’s road and rail infrastructure.
According to the government’s 2022-23 budget, capital grants for regional water infrastructure projects including Lansdown have been allocated over three years. The federal Labor government has committed a further $22m to Lansdown.
QPM is proposing a Townsville Energy Chemicals Hub refinery to produce nickel and cobalt for the lithium-ion battery and electric vehicle sector.
The company will import nickel ore from New Caledonia as feedstock for the refinery which will use a new Australian developed DNI Process which has no requirement for tailings dams and produces minimal waste.
QPM plans to source nitric acid recycling equipment for the process from US engineering firm KBR and has announced it will work with them on its design.
Subject to successful testwork, engineering and negotiation, the companies will enter into a commercial agreement where QPM purchases equipment from KBR and KBR provides Performance Guarantees over its technology and equipment.
In a statement to the Australian Stock Exchange, Mr Grocott said that while they wanted to advance to a Final Investment Decision as quickly as possible, exchanging a modest delay for a partnership with KBR which delivered such a high level of derisking was a win.
He said it enhanced their ability to deliver a feasibility study and commercial arrangements that could attract funding.
The project is expected to create 800 construction jobs and 300 skilled operational jobs, as well as grow employment in the transport, utilities and engineering sectors
The company is aiming to commission the refinery in 2024.