Progress on project
GOVERNMENT-BACKED financier Northern Australia Infrastructure Facility is making detailed assessments on whether to fund a Townsville battery metals refinery developer.
The Asx-listed Queensland Pacific Metals, which is proposing a $650m refinery in the Lansdown Eco-industrial Precinct, last week announced they had been told by the fund its assessment of the project would move into due diligence.
It is the final stage of a detailed review before an investment decision is made by the fund’s board and responsible Minister for Northern Australia.
QPM will now submit a formal investment proposal.
In a statement, QPM said, if approved, NAIF’S debt facilities would partially fund its Townsville Energy Chemicals Hub project.
QPM is planning a battery feedstocks refinery complex on a 289ha site in the precinct about 40km southwest of Townsville to produce critical minerals including nickel and cobalt. The project would create up to 1000 construction jobs and about 250 operational jobs. Korean battery maker LG Energy Solutions and Korean steel producer POSCO have taken stakes in QPM with investments in share issues totalling $US15M ($A19.4m).
They have also undertaken to enter into offtake agreements for nickel and cobalt produced in the refinery.
QPM managing director Stephen Grocott said the company was working to secure its debt and equity financing needed to reach a final investment decision.
He said NAIF’S decision to progress to due diligence was a significant step towards attracting other debt financiers and building the optimum debt syndicate.
“I am delighted that NAIF has accepted the TECH project to move into due diligence stage,” Mr Grocott said.
“This is vindication of the opportunity we have to build a world-leading manufacturing facility of battery metals which will be a game changer for nickel laterite processing, while also delivering significant benefits to Townsville and greater North Queensland.”
QPM wants to begin construction mid next year and commission the plant in late 2023.