Clean TeQ Holdings has appointed Macquarie Capital to search for a partner to work on the company’s Sunrise battery materials complex in New South Wales.
The company is planning to divest up to 50 per cent of its ownership of the Sunrise nickel-cobalt-scandium resource and enter into an offtake agreement should a suitable partner be found.
Clean TeQ said it decided to announce the plans in response to enquiries from “a range of parties in the electric vehicle supply chain”.
The company intends to find a project partner in the second half of 2019, with construction to commence shortly after reaching a final investment decision in the fourth quarter of 2019.
“With approximately $150 million invested by Clean TeQ in the project to date, a solid foundation has been built for the successful and rapid delivery of this project,” Clean TeQ chief executive officer Sam Riggall said.
Clean TeQ launched a successful $150 million share placement in March 2018 to fast track the project’s production by up to 12 months.
The Sunrise project, around 350 kilometres from Sydney, is expected to become the world’s largest non-African source of battery-grade cobalt sulphate and nickel sulphate, both of which are key raw materials in the production of lithium-ion battery cathodes.
Riggall added the project was positioned to benefit from macroeconomic themes, such as “the electrification of transport driving cobalt and nickel demand, a global shortage of class one nickel sulphide deposits and increasing customer requirements for auditable, sustainable supply chains.”
A definitive feasibility study (DFS) was revealed in June 2018, delivering a net present value of $US1.4 billion and an annual average nickel and cobalt production of 19,620 tonnes and 4420 tonnes over the first 10 years of a potential 40-plus-year mine life. The project is approved to produce up to 2.5 million tonnes of ore a year.