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- Australian Mines (AUZ) has been offered a financial support package from the Queensland Government for its Sconi Project in Queensland
- This funding package is part of the Jobs and Regional Growth Fund, which aims to grow regional economies and create long-term jobs in the state
- However, before Australian Mines can receive the support package, a number of conditions must be met
- These conditions include executing an offtake agreement and delivering a detailed project execution plan, obtaining sufficient financing, and appointing an engineering and construction management contractor
- The company must also achieve construction completion by July 30, 2023, and employ a minimum of 191 people by June 30, 2024
- If these conditions are met, Australian Mines will be able to receive the support package and begin mining in 2023
- Australian Mines’ share price has skyrocketed 44.4 per cent this morning and shares are currently trading for 1.3 cents each
Australian Mines (AUZ) has been offered a financial support package from the Queensland Government for its Sconi Cobalt-Nickel-Scandium Project.
This funding package is part of the Jobs and Regional Growth Fund, which is managed by Queensland’s Department of State Development, Tourism and Innovation.
The aim of this fund is to grow regional economies and create long-term jobs for Queenslanders.
“Supporting this project supporter North Queensland’s resources industry and supports North Queensland jobs,” Premier Annastacia Palaszczuk commented.
“This project will support an estimated 500 jobs over a two-year construction period and create 289 long-term positions once fully operational,” she added.
The Sconi Project is located in northern Queensland, has a mine life spanning more than 30 years, and is expected to produce 1.4 million tonnes of nickel sulphate and 0.2 million tonnes of cobalt sulphate.
As a result, once fully developed, Sconi is projected to become one of the most competitive cobalt-nickel operations in the world.
Australian Mines has already processed ore to create battery-grade cobalt sulphate and nickel sulphate for the electric vehicle and energy storage industries.
However, before Australian Mines can receive the support package, a number of conditions must be met.
These conditions include executing an offtake agreement and delivering a detailed project execution plan by September 30, as well as obtaining sufficient financing and appoint an engineering and construction management contractor by December 31.
Australian Mines must also achieve construction completion by July 30, 2023, employ a minimum of 191 people by June 30, 2024, and engage at least 57 full-time additional staff from June 30, 2024.
If these conditions are met, Australian Mines will be able to receive the support package and begin mining in 2023.
“I am highly appreciative of the Queensland Government’s offer to broaden its ongoing support of the Sconi Project,” Managing Director Benjamin Bell said.
“Having the opportunity to access state funding for Sconi sends a strong message about the quality of the project and Australian Mines’ ability to progress its development, despite the broader economic uncertainty being caused by the COVID-19 pandemic,” he added.
Australian Mines’ share price has skyrocketed 44.4 per cent this morning and shares are trading for 1.3 cents each at 11:08 am AEST.
