Pure Minerals Ltd.'s pre-feasibility study for development of the Townsville Energy Chemicals Hub in Queensland, Australia, outlined a posttax net present value of A$568 million and a 20.1% internal rate of return.
The preproduction capital expenditure for the battery chemicals refinery was estimated at US$300 million, with a US$49 million contingency. Operating expenditure was anticipated to be A$155 million.
The project is expected to annually produce 26,398 tonnes of nickel sulfate and 3,097 tonnes of cobalt sulfate during a 30-year life of mine.
The battery chemicals refinery is estimated to generate A$279 million of revenue and A$124 million of EBITDA per year.
The company's wholly owned unit, Queensland Pacific Metals Pty. Ltd., will initiate a definitive feasibility study, advance environmental studies and approval application, and conduct pilot-scale campaigns to test the flowsheet and generate product samples for potential off-take partners.
In October, Queensland Pacific extended a nickel-cobalt ore supply agreement for the project to 10 years from five years, with an option to renew for another five years.