Queensland Pacific Metals (QPM), a subsidiary of Pure Minerals, has appointed Lycopodium to undertake a pre-feasibility study (PFS) for its battery materials refinery in Townsville.
The refinery, which is planning to produce 600,000 tonnes of battery material per year, supports the company’s goal to produce chemicals required for the emerging battery energy storage sector.
The project has been dubbed the Townsville Energy Chemicals Hub (TECH Project) and is expected to produce nickel and cobalt chemicals.
QPM is planning to immediately start the PFS for the refinery, which will produce approximately 25,000 tonnes of nickel sulphate and 3000 tonnes of cobalt sulphate per year.
Lycopodium will undertake the engineering relating to the TECH project, which will include its process services and utilities design and engineering.
It will also prepare the project capital and operating cost estimates before its final completion of the PFS.
The engineering company has also agreed to accept shares in Pure Minerals as consideration for approximately 20 per cent of its estimated fees.
This highlights Lycopodium’s confidence in the growth of the battery metals industry, according to its managing director Rod Leonard.
“The outlook for battery metals is positive and Lycopodium is well positioned to carry out this body of work, having completed a wide range of studies for major, mid-tier and junior clients in this space,” he said.
QPM director John Downie welcomed the opportunity to work with Lycopodium, a move he anticipated would find positive results for the PFS.
“We are excited to work with Lycopodium on this PFS and look forward to delivering a positive study demonstrating the potential value of the TECH Project for PM1 shareholders,” Downie said
The PFS is expected to be completed in the September quarter of 2019.