Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Battery materials maker Australian Mines gets state loan, shares soar

Published 15/07/2020, 12:19 pm

July 15 (Reuters) - Australian Mines Ltd AUZ.AX said on Wednesday the government of Queensland state has offered the advanced battery materials maker a financial support package for its Sconi cobalt-nickel-scandium project, sending its shares soaring about 60%.

The company said in a statement that the state support package, a part of the Jobs and Regional Growth Fund, specifies that Australian Mines should execute an offtake agreement by Sept. 30 for 100% of the nickel and cobalt sulphate to be produced from the project.

The aim of this fund is to grow regional economies and create long-term jobs for Queenslanders.

The company must also employ at least 191 people in Queensland, on a full-time and ongoing basis, by June 2024 and maintain the number for the duration of the agreement.

"This project has the potential to support the regional economy and hundreds of jobs. That's why the Palaszczuk Government is proud to support the project as part of Queensland's plan for economic recovery," Minister for Regional Development and Manufacturing Glenn Butcher said.

Australia is the world's biggest supplier of lithium and has significant nickel and cobalt reserves, which are key components in electronic vehicles (EV).

However, battery makers in the country have been affected by a prolonged downturn in prices amid slowing sales in China, the world's top EV market, that worsened after a hit to demand as a result of the coronavirus-induced lockdown.

Shares of the company notched their best intraday session since December 2018.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.