- Queensland Pacific Metals (QPM) has entered a binding ore supply agreement with New Caledonian mining company, Société des Mines de la Tontouta (SMT)
- The 10-year agreement will see the supply of up to 600,000 wet metric tonnes (wmt) per annum
- The supply specification will target limonite ore of 1.6 per cent nickel and 0.18 per cobalt, with commencement due in 2023
- In addition, the companies have agreed to explore further mutually beneficial opportunities
- Shares are trading 6.25 per cent higher at 17 cents at 11:15 am AEST
Queensland Pacific Metals (QPM) has entered a binding ore supply agreement with New Caledonian mining company, Société des Mines de la Tontouta (SMT).
The agreement has a term of 10 years and will see the supply of up to 600,000 wet metric tonnes (wmt) per annum.
The supply specification will target limonite ore of 1.6 per cent nickel and 0.18 per cobalt, with commencement due in 2023.
Pricing will be determined by the underlying nickel price on the London Metal Exchange (LME) and the price of Cobalt according to the Metal Bulletin.
However, the agreement is conditional on QPM making a final investment decision to build the Townsville Energy Chemicals Hub (TECH) project in Queensland.
In addition, the companies have agreed to explore further mutually beneficial opportunities.
SMT General Manager Arnaud Bondoux is excited to extend the partnership with QPM further.
“SMT would like to make a long-term commitment to QPM, beyond its role as a supplier, in order to propose a new model for the valorization of New Caledonian ore,” he said.
QPM Managing Director Dr Stephen Grocott was also delighted with the agreement.
“SMT has been a strong supporter of the TECH Project for a long time and we look forward to having a long term partnership that delivers value to both companies,” Dr Grocott said.
Shares were trading 6.25 per cent higher at 17 cents at 11:15 am AEST.