Blackstone Minerals (ASX:BSX) completes Ta Khoa Refinery pre-feasibilty study

• Blackstone Minerals (BSX) completes a pre-feasibility study for the development of a downstream refinery in Northern Vietnam
• The company says the study demonstrates low capital is required for the project to manufacture Class I nickel at a scale that would make Blackstone a globally significant producer
• The company is progressing approval to commence the next phase of definitive feasibility studies and pilot plant testing in Vietnam, and is targeting a final investment decision in 2022
• Blackstone Minerals is up 2.2 per cent, trading at 46.5 cents at 1:06 pm AEST

Blackstone Minerals (BSX) has completed a pre-feasibility study (PFS) for the development of a downstream refinery in Northern Vietnam.  

The company says the study demonstrates only low capital is required for the project to manufacture Class I nickel at a scale that would make Blackstone a globally significant producer.

The study considers the option of a refinery to process up to 400 kilotonnes per annum of nickel concentrate.

The PFS suggests upfront project capital of US$491 million (around A$667.5 million) paid back in 1.5 years from first projection, with a life of operations revenue of US$14 billion (A$19 billion) and operating cash flow of US$4.5 billion (roughly A$6.1 billion).

Blackstone said its development strategy was supported through third party feed sources to supplement the nickel concentrate supply from the company’s flagship Ta Khoa Nickel Project.

With drilling continuing and further exploration underway, Blackstone said the base case refinery had the potential to be fed entirely by feedstock from the Ta Khoa Nickel Project.

The company says its decision to proceed with the development of the refinery is contingent upon a number of factors, including future exploration success at Blackstone’s Ta Khoa Mine and the ability to secure from other sources.

Based on current and confidential discussions, BSX believes it can secure sufficient supply to meet the demand for the project.

Blackstone said it intended to develop and fund the construction of the downstream refinery via a collaborative partnership-based model. The company added that it planned to retain a significant interest in the project and expected its portion of funding would be met through a combination of debt, equity and offtake financing.

Blackstone has been involved in multiple financing discussions and has been approached by a number of financial advisors interested in supporting Blackstone’s funding strategy.

The company is immediately progressing approval to commence the next phase of definitive feasibility studies and pilot plant testing in Vietnam, and is targeting a final investment decision in 2022.

Blackstone Minerals was up 2.2 per cent, trading at 46.5 cents at 1:06 pm AEST.