Queensland Pacific Metals Ltd (ASX:QPM) (QPM) has broadened its partnership with New Caledonian ore supplier Société des Mines de la Tontouta (SMT) to ensure long-term supply of ore for its cornerstone TECH Project.
The partners have now entered into a non-binding memorandum of understanding (MOU) to expand the partnership that will involve SMT supplying beyond the agreed 600,000 wet metric tonnes of laterite ore per annum to QPM under Phase 1 and additional ore supply for Phase 2 of the project.
For SMT, the expanded partnership will allow it to participate in the value created by QPM's processing of the ore into battery chemicals and fostering employment opportunities in New Caledonia.
Natural extension
“I am delighted to extend our current supply relationship SMT into a broader strategic partnership which encompasses the framework for cooperation to deliver even greater value to both companies,” QPM managing director and chief executive officer Dr Stephen Grocott said.
“SMT has been a strong supporter of the TECH Project for a long time and this MOU is a natural extension of our current collaboration.
“It is intended to assist QPME (QPM’s energy arm) in underpinning the ore supply for not only Stage 1 but also Stage 2 and provide a pathway for SMT to participate in the value created through development of the TECH Project.”
Renewing relations
SMT general manager Arnaud Bondoux added: “Signing a nickel ore supply contract with QPM means renewing relations with Australia, which has always been a historical partner of SMT and New Caledonia.
“Indeed, exports between SMT and Australia have taken place over a period of more than 25 years, from 1989 until recently in 2015.
“SMT was involved in QPM's innovative project from the outset by actively participating in the pilot tests.
“In fact, QPM and SMT have been in contact for four years now and have formed a partnership that led to the signing of a first MOU in 2017.
“SMT intends to make a long-term commitment to QPM, beyond its role as a supplier, in order to propose a new model for the valorisation of New Caledonian ore.”