Pure Minerals Limited (ASX:PM1) is confident an updated Pre-Feasibility Study (PFS) has provided a more robust outlook for its Townsville Energy Chemicals Hub (TECH Project).
The revision of a December 2019 PFS undertaken by Pure Minerals and its subsidiary Queensland Pacific Metals (QPM) examined the potential for the project to be a significant producer of complementary battery chemicals; nickel sulphate, cobalt sulphate and high-purity alumina (HPA).
The new study incorporated the following changes:
- Addition of a high-purity alumina (HPA) refinery; and
- Optimisation work undertaken to reduce gas and water consumption, thereby reducing operating costs.
A key finding of the updated PFS is that whilst commodity spot prices are currently weakened the TECH project remains robust.
Managing Director John Downie said the study also found that the incorporation of a HPA refinery has added significant value to the TECH Project.
The Updated PFS demonstrates that the TECH Project can be a significant supplier of battery chemicals, generating robust financial returns with soft commodity prices and excellent financial returns in stronger commodity cycles,” Mr Downie said.
“The strong economics for the TECH Project will appeal to offtakers and strategic investors who are seeking to support projects that can delivery certainty of supply at all times.
“It has only been 10 months since the acquisition of QPM by Pure Minerals, and in that time the team has accomplished many milestones including the A$2.55 million CRC-P grant, conditional granting of land in Townsville and the completion of this PFS.
“It is an exciting time to be involved in energy innovation and battery technology will define the future of renewable energy. Lithium ion battery technology, utilising high purity Ni and Co sulphate and HPA is dominating the electric vehicle and energy storage future. We envision the TECH Project to benefit significantly from that future.”
