Queensland Pacific Metals Ltd (ASX:QPM) has solidified its strategy to deliver a bankable feasibility study for the flagship TECH Project with the inking of a non-binding memorandum of understanding (MoU) with leading technology, science and engineering firm KBR (NYSE:KBR) Inc to supply technology and equipment.
KBR (NYSE:KBR) will – through its Plinke and Weatherly brands – supply equipment for iron hydrolysis and nitric acid processing and recycling technologies for the TECH Project.
Performance guarantee
QPM has already achieved nameplate levels of nitric acid recycling for the TECH Project, an achievement financiers point to as an advantage for the project.
Under the MoU, QPM and KBR will negotiate commercial terms involving the granting of a performance guarantee for KBR technology and equipment, which is expected to assist in demonstrating the commercial benefits of the DNi Process™.
The DNi process is described as an environmentally-friendly process for extracting nickel, cobalt and other valuable minerals from laterite ore – advantages include an over 98% recycle rate for nitric acid involved in the process, minimal waste products, and no need for a tailings dam.
MoU demonstrates TECH is “on the right track”
“To attract this level of engagement from globally recognised vendors such as KBR demonstrates QPM is on the right track with the TECH Project,” Queensland Pacific Metals managing director and CEO Stephen Grocott said.
“Whilst we want to advance to a Final Investment Decision as quickly as possible, exchanging a modest delay for a partnership which delivers such a high level of de-risking is a win.
“It enhances our ability to deliver a Feasibility Study and commercial arrangements that can attract funding.
“QPM has been working closely with KBR for some time now and we welcome the partnership approach to delivering this critical nitric acid recycling equipment for the TECH Project.”
The TECH Project’s upcoming feasibility study has experienced a minor delay in the form of ongoing test work designed to facilitate KBR’s offer of a Performance Guarantee, now expected to be completed in late Q3 or early Q4 this calendar year.
KBR management has expressed its commitment to the MoU, acknowledging the strategic benefit of being a major supplier for QPM and its TECH Project, especially considering the anticipated growth in demand for nickel and the potentially game-changing nature of the DNi Process for sustainable nickel laterite processing.
Townsville Energy Chemical Hub (TECH) simple process flowsheet:
