MHP Assays Delivery Excellent Results
Queensland Pacific Metals Ltd (ASX:QPM) has received positive assay results for the MHP produced from its recent piloting testwork for the TECH Project in northern Queensland, Australia.
As part of QPM’s technical team, it engaged leading consultants who are experts in both MHP production and its refining of MHP into nickel and cobalt sulphate. These experts (including specialist David White who has worked with many nickel laterite and MHP producers) have confirmed that the assay results of QPM’s MHP are in line with leading MHP products that are currently sold around the world, largely for the purpose of refining into nickel and cobalt sulphate.
MHP is currently the preferred nickel feed source for refining to nickel sulphate as the process to do so is commercial, relatively straight forward and has low capital and operating costs. The issue is that there is limited MHP available in the global market, and sulphate producers have had to supplement their feed with nickel metal.
Historically, MHP used to sell for around 65-75% of the LME nickel price (for the nickel contained in the MHP). However, with the growth in demand for nickel sulphate, MHP payability has increased significantly. In the most recent quarter, leading nickel analysts Benchmark Minerals reported MHP payability had increased to 84.5% in the recent December 2020 quarter. This percent payability is for good quality MHP products. Inferior MHP sells at a lower percent payability.
QPM’s intention is for the TECH Project is to sell nickel and cobalt sulphate as a value-add product. However, given that it is a high purity battery chemical, there can sometimes be a period of product acceptance testwork on commercial scale production that must be undertaken with potential offtakers. The ability to sell high quality MHP in parallel with this acceptance period will be a benefit for the TECH Project.
The TECH Project will be an advanced and sustainable producer of a critical chemicals for the lithium ion battery and electric vehicle sector. Processing high grade ore imported from New Caledonia, the TECH Project will produce nickel sulphate, cobalt sulphate, high purity alumina and other by-products – leaving, for the first time ever in the world, almost zero waste products.
The TECH Project is located in Townsville, in the newly established Lansdown Eco-Industrial Precinct, intended to be Northern Australia’s first environmentally sustainable advanced manufacturing, processing and technology hub.
QPM is currently advancing through feasibility studies and approvals for the TECH Project.
QPM has selected Townsville as home to the TECH Project. Townsville is the ideal location for the TECH Project and offers many benefits including:
- Close proximity to New Caledonia
- Long term history of importing nickel ore from New Caledonia with supporting infrastructure such as port and rail
- Availability of skilled labour and engineering services
QPM has secured land at the Lansdown Eco-Industrial Precinct, approximately 35km south of Townsville.
This is an ideal location for the TECH Project and is well supported with existing infrastructure:
- Water pipeline
- Gas pipeline
- Electric transmission
- Fibre optic communications
- Existing Ross River (140 MW) and Edify (400MW) solar arrays
- Road train access to Townsville Port (Flinders Highway)
- Rail line
Lansdown has been zoned heavy industrial, which will provide for an easier pathway for environmental approvals for the TECH Project.
