- Queensland Pacific Metals (QPM) can purchase up to one million wet metric tonnes (wmt) of limonite ore yearly from New Caledonian nickel producer Société Le Nickel (SLN) under a new binding ore supply agreement
- The five-year ore supply term of the agreement comes with a five-year extension, subject to mutual agreement
- The agreement is targeting a typical limonite ore specification of 1.6 per cent nickel and 0.18 per cent copper
- QPM’s ‘TECH project’ reportedly offers a long-term solution to processing limonite, which remains underdeveloped around the world
- Shares in QPM are trading up 15.4 per cent to 15 cents
Queensland Pacific Metals (QPM) can purchase up to one million wet metric tonnes (wmt) of limonite ore yearly from New Caledonian nickel producer Société Le Nickel (SLN) under a new binding ore supply agreement.
On Tuesday, the Government of New Caledonia announced an increase to the annual nickel ore export quota of SLN to one million wmt per annum, valid until 2029.
QPM said it’s delighted it has secured this level of tonnage in the agreement, given the memorandum of understanding signed between QPM and SLN in April last year contemplated ore supply of just 800 thousand wmt.
The five-year ore supply term of the agreement comes with a five-year extension, subject to mutual agreement, with pricing to be linked to the underlying price of nickel and copper on an FOB basis.
The agreement is targeting a typical limonite ore specification of 1.6 per cent nickel and 0.18 per cent copper.
The purchase price under the agreement is commercial in confidence.
QPM Managing Director Dr Stephen Grocott believes the agreement is just the start of a long-term relationship that will be very beneficial to both companies.
“This milestone is a further significant de-risking event for QPM and the TECH project,” Dr Grocott said.
“New Caledonia, and the world, is awash with limonite resources that remain undeveloped – the successful commercialisation of the TECH Project will be a game-changer for these deposits and their ability to form part of global, sustainable nickel production.”
QPM’s TECH project reportedly offers a long-term solution to processing limonite.
SLN and QPM have also agreed to continue to explore other partnership opportunities regarding additional ore supply and potential TECH Project participation.
Shares in QPM were trading up 15.4 per cent to 15 cents at 11:50 am AEDT.