Queensland Pacific Metals receives $8m grant for TECH project

Queensland Pacific Metals (ASX: QPM) has received an $8m grant from the Federal Government under the International Partnerships in Critical Minerals program.

The company has been working with the Government and stakeholders to secure independent funding to advance its TECH project in Queensland and this grant represents a significant step towards achieving this.

The TECH (Townsville Energy Chemicals Hub) project will be a modern and sustainable battery materials refinery, processing imported, high-grade laterite ore to produce nickel and cobalt sulphate as well as other valuable co-products.

It has been declared a prescribed project by the Queensland Government, meaning it is of significance to the State and is economically and socially important to a region.

It has a nameplate capacity of 16kt of nickel metal contained in nickel sulphate and 1.75kt cobalt metal contained in cobalt sulphate. QPM has already secured offtake agreements for 100% of nickel and cobalt sales for the life of the project.

QPM non-executive director Dr Stephen Grocott says the company is thankful to receive the grant.

“We are grateful to the Federal Government for their support through the International Partnerships in Critical Minerals program,” he said.

“This grant is a testament to the attractiveness of the TECH project for high quality, excellent ESG batter materials production.”

Discussions with commercial partners and the Queensland Government to secure funding and complete commercial validation of the TECH project are ongoing.

This grant to QPM came with a $5m grant to Renascor Resources (ASX: RNU) for its pilot purified spherical graphite project in South Australia.

Renascor’s purified spherical graphite pilot processing plant will produce purified spherical graphite for use in lithium-ion batteries. It will become Australia’s first vertically integrated graphite manufacturer.

Federal resources minister Madeleine King says these grants support the Government’s critical minerals strategy and Future Made in Australia agenda.

“We have a rich endowment of the critical minerals required for renewable energy technologies and our strategy will ensure Australia is well positioned to provide these resources as the world transitions to net zero,” she said.

“The road to net zero runs through Australia’s resources sector.”