A binding ore supply agreement signed between Queensland Pacific Metals Ltd (ASX:QPM) and Maï Kouaoua Mines (MKM) for up to 300,000 wmt per annum, highlights QPM’s growing presence and strength of relationships it has established in New Caledonia.
The new agreement further diversifies its foothold in the region and comes in addition to ore supply agreements QPM holds with Société Le Nickel (SLN), Société des Mines de la Tontouta (SMT) and Société Minière Georges Montagnat (SMGM).
QPM has contracted up to 2.1 million wmt of nickel ore for its proposed Townsville Energy Chemicals Hub (TECH) Project and now has the flexibility and security to meet nameplate capacity requirements of 1.6 million wmt per annum.
The project is poised to become a leading supplier of high-grade, ethically derived advanced battery materials and the Queensland Government has recognised the benefits of developing the TECH Project by giving it Prescribed Project Status, which identifies projects that are of state significance and are economically and socially important to a region.
Fourth agreement
“I am pleased to enter into this agreement with MKM. We look forward to working with them and the other New Caledonian mining companies to maximise clean ore supply," QPM managing director Dr Stephen Grocott.
"We now have agreements with four mining companies in New Caledonia, strengthening our ties to the country and increasing our security of ore supply.”
MKM leads local community
MKM has been around since 1984 and was founded by Jules Maï after working for 30 years in the mining sector for the Pentecost Group.
The family business has developed relationships and worked as a subcontractor with all the other mining companies now in New Caledonia. They opened their own mine site by doing rehabilitation works and ore extractions on the ADA mine at N’Go Bay in 2010.
Working as a direct operator, MKM leads the local community by contributing to the creation of the WAKONDE company in charge of the loading ore carriers and N’Go Nickel in charge of transporting the ore from the mine to the storage area at the loading port.
“Our company is happy to contribute to the establishment of an innovative metallurgical plant in its process and respectful of social and environmental rules. The possibility that QPM can accommodate Caledonian nickel ore is an opportunity for us and for all Caledonia's miners,” MKM general manager Christian Taupua said.
About the agreement
The ore supply agreement between QPM and MKM is for 10 years starting in 2024 with a tonnage of up to 300,000 wmt per annum.
The companies are targeting a typical limonite ore specification of 1.6% nickel and 0.18% cobalt.
Limonite ore
- 1.3-1.7% nickel (typical 1.6%);
- 0.22% cobalt (typical 0.18%);
- 30.0-50.0% iron (typical 42%);
- 1.5-7.0% magnesium oxide (typical 4%);
- 1.0–6.0% aluminium oxide (typical 3%); and
- 28.0-40.0% moisture (typical 35%).
The conditions are based on QPM making a final investment decision to build the TECH Project and exports from MKM to QPM will be subject to prior authorisation by the New Caledonian Government.