Queensland Pacific Metals Ltd (ASX:QPM) has entered into a binding ore supply agreement with Société des Mines de la Tontouta (SMT), a New Caledonian mining company to procure up to 600,000 wet metric tonnes (wmt) of nickel ore per annum for a term of 10 years.
In combination with the Société Le Nickel ore supply agreement, the company has now also secured up to 1,600,000 wmt nickel ore per annum under binding contracts.
Looking ahead, SMT and QPM have agreed to explore further opportunities that are mutually beneficial, including investment and other commercial arrangements.
“Impressive mining operations”
QPM managing director Dr Stephen Grocott said: “I am delighted to enter into this agreement with SMT who have impressive mining operations in New Caledonia that meet the requirements of western automobile manufacturers who are concerned with sustainability and responsible mining.
“SMT has been a strong supporter of the TECH Project for a long time, and we look forward to having a long-term partnership that delivers value to both companies.”
Key terms of the agreement
Historical partnership
Société des Mines de la Tontouta is a subsidiary of the Ballande Group, a "small miner" and historical mining company, which has been present in New Caledonia since the end of the 19th century.
SMT general manager Arnaud Bondoux said: “Signing a nickel ore supply contract with QPM means renewing relations with Australia, which has always been a historical partner of SMT and New Caledonia.
“Indeed, exports between SMT and Australia have taken place over a period of more than 25 years, from 1989 until recently in 2015.
“SMT was involved in QPM's innovative project from the outset by actively participating in the pilot tests.
“In fact, QPM and SMT have been in contact for four years now and have formed a partnership that led to the signing of a first MoU in 2017.
“SMT would like to make a long-term commitment to QPM, beyond its role as a supplier, in order to propose a new model for the valorisation of New Caledonian ore.”