Queensland Pacific Metals Ltd (QPM) and Mai Kouaoua Mines (MKM) have signed a binding ore supply agreement of up to 300,000 wet tonnes per year, highlighting QPM's growing influence and strong relationships in New Caledonia.
In addition to deals with Societe Le Nickel (SLN), Societe des Mines de la Tontouta (SMT) and Societe Miniere Georges Montagnat (SMGM) The New Deal extends its foothold in the region, in addition to the ore supply agreement.
QPM has contracted up to 2.1 million wet tonnes of nickel ore for its proposed Townsville Energy Chemicals Hub (TECH) project and now has the flexibility and security to meet the facility capacity requirement of 1.6 million wet tonnes per year.
The project is expected to become a leading supplier of advanced, ethically compliant battery materials, and the Queensland Government has recognised the benefits of developing a TECH project by giving it the required project status that identifies projects of national and economic significance as socially significant to a region.
Fourth agreement
Stephen Grocott, managing director of QPM, said he was pleased to have reached this agreement with MKM. Looking forward to working with them and other New Caledonian mining companies to maximize ore supply.
And QPM has now struck deals with four mining companies in New Caledonia, not only strengthening the company's ties to the country, but also improving the security of its ore supply.
MKMS lead local communities
MKM was founded in 1984 by Jules Mai after 30 years in the mining division of the Pentecost Group.
The family business established relationships with all the other mining companies now located in New Caledonia and worked as subcontractors. In 2010, they opened their own mine by carrying out restoration works and ore mining at the ADA Mine in N'Go Bay.
As direct operators, MKM led the local community in creating the WAKONDE Company, which was responsible for loading ore carriers, and N'Go Nickel, which was responsible for transporting ore from the mine to the loading port storage area.
About the agreement
The ore supply agreement between QPM and MKM is for a period of 10 years, with an annual ore supply of up to 300,000 wet tons starting in 2024. The agreement between the two companies is for a typical limonite specification with 1.6 percent nickel and 0.18 percent cobalt.
limonite
1.3-1.7% nickel (typical value 1.6%); 0.22% cobalt (typical 0.18%); 30.0-50.0% iron (typical value 42%); 1.5-7.0% magnesium oxide (usually 4%); Alumina 1.0-6.0% (usually 3%); And 28.0-40.0% moisture (typical value 35%).
Pricing is currently confidential and will be based on fob nickel (LME exchange) and cobalt (metal Bulletin) prices.
