Queensland Pacific Metals Ltd (ASX:QPM) is trading higher after being awarded a $5 million grant from the Australian Federal Government under the Critical Minerals Development Program.
The grant funding has been designated to fast-track the Front-End Engineering Design (FEED) process, also known as detailed engineering, for the TECH Project.
Renowned engineering firm Hatch has been appointed as lead engineer responsible for overseeing the project.
QPM will also contribute its own funding for the work program.
The markets have welcomed the news with shares trading as high as A$0.13, up 8.7% from the previous close
About the project
QPM’s Townsville Energy Chemicals Hub, also known as the TECH Project, is set to become an advanced and environmentally friendly battery materials refinery, processing imported, high-grade laterite ore from New Caledonia to produce nickel sulphate and cobalt sulphate, as well as other valuable co-products.
One of the key highlights of the TECH Project is its world-leading sustainability practices in mineral processing, which include achieving negative carbon emissions, eliminating the need for tailings dams, and ensuring no discharge of process liquids.
QPM has already secured offtake agreements for 100% of nickel and cobalt sales for the life of the project.
In addition to being offtake partners General Motors, LG Energy Solutions and POSCO are also investment partners with a significant shareholding in QPM.
The TECH Project will have a nameplate annual production of 16,000 tonnes of nickel metal contained in nickel sulphate and 1,750 tonnes of cobalt metal contained in cobalt sulphate.