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Poseidon Nickel (ASX:POS) signs MOU for potential supply of nickel to new refinery

Materials
ASX:POS      MCAP $22.28M
13 October 2021 08:30 (AEST)
Poseidon Nickel (ASX:POS) - Managing Director & CEO, Peter Harold

Source: Poseidon Nickel

Poseidon Nickel (POS) has signed an MOU with Pure Battery Technologies (PBT) to explore the potential supply of nickel concentrate to PBT’s proposed battery material refinery hub in Kalgoorlie, Western Australia.

Initial studies will focus on a production rate of 50,000 tonnes per year of precursor Cathode Active Material (pCAM) from the refinery, which is expected to increase over time.

PBT will use its in-house technology and expertise, while Poseidon will provide specifications and projected production volumes of nickel concentrate from its Black Swan and Lake Johnston projects.

“We look forward to working with PBT to determine if our potential concentrate production could be feed for PBT’s proposed refinery, should we decide to proceed with development of our projects,” Poseidon’s Managing Director and CEO Peter Harold said.

“This could be a great way for us to improve the payability of the nickel in our concentrates and improve the margins of our projects.”

Based in Brisbane, PBT already owns — through its subsidiary K&E Germany — and operates a nickel and cobalt refining operation in Hagen, Germany.

The ultimate objective, Poseidon said, was to execute a definitive agreement that will show how both companies will work together to fund and develop a regional supply chain. That will include the process from mine, to concentrate, to an intermediate mixed nickel cobalt hydroxide product, which will be further processed at PBT’s refinery.

Poseidon stressed that there are no binding obligations under the MOU and that it has been designed not to hinder any other transactions or processes for either company.

Shares in Poseidon Nickel were trading in the grey at 10 cents each at 11:20 am AEDT

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