Blackstone Minerals Ltd (ASX:BSX, OTCQX:BLSTF, FRA:B9S)’s board of directors have approved the first phase of pilot plant work at the Ta Khoa Refinery (TKR) in Vietnam, as well as the definitive feasibility study, following compelling pre-feasibility study (PFS) outcomes.
The first phase of piloting will be designed to process 20 kilograms per hour of nickel concentrate feed and will produce approximately 1.75 kilograms per hour of nickel in nickel-cobalt-manganese (NCM) products.
BSX managing director Scott Williamson said the board’s endorsement of the recent PFS milestone has been rapidly followed by approval of the first phase of piloting and the Ta Khoa Refinery DFS.
First mover advantage
“The pilot plant process is an opportunity for Blackstone to optimise, with respect to quantity and quality, recent successful outcomes which include the production of its first battery-grade NCM811 Precursor sample.
“The company is acutely aware of its first-mover advantage and importantly, will be able to deploy its current balance sheet to continue to fast track the next important stages towards commercialisation of the Ta Khoa Refinery.”
Background
The Ta Khoa Refinery Project PFS was released on July 26, marking a critical milestone for the company, reiterating the competitive advantages of nickel sulfide projects and adding value through an integrated downstream processing strategy.
It outlined a refinery that can process up to 400,000 tonnes of nickel concentrate per annum over a 10-year life of operation and will require just under US$500 million in upfront project capital to construct.
Ultimately, Blackstone says the PFS demonstrates very low capital intensity is required for the TKR to produce Class I nickel at a scale that would make Blackstone a globally significant producer.
More broadly, the ASX-lister believes the PFS indicates the technical and economic strength of its hydrometallurgical refining process, which will upgrade nickel sulphide concentrate to produce battery-grade nickel: cobalt: manganese (NCM) 811 precursor for the lithium-ion battery industry.
Looking ahead
Imminent activities include:
- The first phase of piloting will produce various grades of NCM including NCM622 and NCM811;
- Early design works for piloting have been completed, with procurement of equipment to kick off in the current quarter;
- The first phase of piloting will occur in the Son La Province within proximity to the Company’s Ta Khoa Nickel – Cu – PGE Project;
- First pilot plant product expected in early 2022;
- Test work data from piloting will be in support of the TKR DFS;
- Scope of Works submitted to tier-1 firms to tender for lead engineering role for the TKR DFS; and
- The first phase of piloting and the TKR DFS are fully funded from existing cash reserves.