Name of the Project
Townsville Energy Chemicals Hub (TECH) project.

Location
At the Lansdown Eco-Industrial Precinct in northern Queensland, in Australia.

Project Owner/s
Queensland Pacific Metals.

Project Description
An updated prefeasibility study (PFS) has confirmed that the TECH project has the potential to deliver excellent economic returns and remain financially robust in downward price cycles.

The updated PFS envisages the development of a new hydrometallurgical metals processing facility in Townsville, producing nickel sulphate, cobalt sulphate and high-purity alumina (HPA) from imported, high-grade lateritic ore from New Caledonia.

The process to produce battery-grade nickel, cobalt sulphate and HPA from the imported New Caledonia ore is conducted in three parts.

Part 1 involves the ore processing plant, which will leach ore to produce an intermediate mixed hydroxide precipitate (MHP); Part 2 the construction of a sulphate refinery, which will upgrade the MHP into nickel and cobalt sulphate; and Part 3 the development of an HPA refinery, which will upgrade aluminium hydroxide from the ore processing plant to HPA.

The ore processing plant will use a nitric acid leach process, or the DNi process, patented by Direct Nickel Projects, with modifications to suit the expected specifications of the ore supply.

Ore processed at steady state is estimated 565 714 wet tonnes a year, with production estimated at 26 398 t/y nickel sulphate, 3 097 t/y cobalt sulphate, 4 000 t/y of 4N-purity HPA, 327 665 wet metric tonnes of hematite and 20 079 t/y of magnesia.

The plant will have a design life of 30 years.

Potential Job Creation
The project will create about 800 construction jobs and its operational phase will create about 1 700 jobs, including 300 highly skilled advanced manufacturing jobs at the facility and 1 400 jobs in support industries.

Net Present Value/Internal Rate of Return
The project has an updated PFS spot case post-tax net present value of A$1.08-billion and an internal rate of return of 24.9%, with a payback of 4.3 years.

Capital Expenditure
Capital expenditure, excluding contingency, is estimated at A$554-million.

Planned Start/End Date
Construction on the TECH facility could start in 2022, with production starting in late 2023.

Latest Developments
The TECH project has been declared a prescribed project by the Queensland government.

QPM is undertaking a definitive feasibility study (DFS) on the TECH project for which global consultancy Hatch has been appointed as lead engineer.

​The parameters for the DFS are to design the TECH project as a 1.5-million-wet-tonne processing plant.

Key Contracts and Suppliers
Lycopodium (ore processing plant and sulphate refinery) and Simulus Engineers (HPA refinery), with coordination and support from the QPM owners’ team and other technical contributors; SMT, SMSP, Xenith (geology and mining); DNi, CSIRO, BWHC, Prudentia (process and engineering); Saunders Havill Group (environmental and permitting); and Hatch (lead engineer).

Contact Details for Project Information
Queensland Pacific Metals, email info@qpmetals.com.au.