- Queensland Pacific Metals (QPM) signs a non-binding memorandum of understanding with KBR for the supply of technology and critical equipment for the Townsville Energy Chemicals Hub (TECH) facility
- KBR is a global leader in nitric acid processing and recycling technologies and equipment
- Under the agreement, the parties have agreed to negotiate commercial terms that involve granting of a performance guarantee for KBR technology and equipment
- Ongoing testwork is being undertaken to facilitate KBR’s offer of a performance guarantee — this has resulted in a delay to the feasibility study, now expected to be completed by the end of the year
- Shares in Queensland Pacific Metals were down 3.23 per cent to $0.15 at 10:34 am AEST
Queensland Pacific Metals (QPM) has signed a non-binding memorandum of understanding with KBR for the supply of technology and critical equipment for the Townsville Energy Chemicals Hub (TECH) facility.
KBR is a global leader in nitric acid processing and recycling technologies and equipment.
Achieving nameplate levels of nitric acid recycling at TECH has been identified by financiers as a significant advantage of the project.
Under the agreement, the parties will negotiate commercial terms that involve granting of a performance guarantee for KBR technology and equipment.
QPM and KBR will ensure the technology and equipment is designed and constructed to meet the requirements of the TECH project and will work together to find the shortest pathway to commercialise operations.
Ongoing testwork is being undertaken to facilitate KBR’s offer of a performance guarantee, this has resulted in a delay to the feasibility study which is now expected to be completed late third quarter or early fourth quarter of 2022.
Managing Director and CEO Stephen Grocott said to attract global attention from vendors such as KBR means QPM is on the “right track with the TECH project.”
“Whilst we want to advance to a final investment decision as quickly as possible, exchanging a modest delay for a partnership which delivers such a high level of derisking is a win,” he said.
“It enhances our ability to deliver a feasibility study and commercial arrangements that can attract funding. QPM has been working closely with KBR for some time now and we welcome the partnership approach to delivering this critical nitric acid recycling equipment for the TECH project.”
Shares in Queensland Pacific Metals were down 3.23 per cent to $0.15 at 10:34 am AEST.