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- Pure Minerals’ (PM1) shares have climbed over 53 per cent after announcing a two-year agreement with South Korean chemical company, LG Chem
- LG Chem plans to purchase up to 10,000 tonnes of contained nickel and 1000 tonnes of contained cobalt from the Townsville Energy Chemicals Hub Project in Townsville, Queensland
- Eventually, the companies will enter a binding offtake for nickel and cobalt for a three-to-five year period
- Pure and LG Chem will also collaborate on potentially increasing the size and scale of the project to meet LG Chem’s demand
- Increasing the scale is also set to benefit project economics and provide more jobs and opportunities for the Townsville community
- Once the project size has been finalised, bankable feasibility studies and project approvals will begin
- Company shares are up 53.3 per cent on the back of today’s news, with shares trading for 4.6 cents
Pure Minerals (PM1) has entered a non-binding memorandum of understanding with LG Chem for the supply of nickel and cobalt from the TECH Project.
The Townsville Energy Chemicals Hub Project, or the TECH Project, is located in Townsville and is wholly-owned by Pure’s subsidiary, Queensland Pacific Metals (QPM).
Under the two-year agreement, LG Chem plans to purchase up to 10,000 tonnes of contained nickel and roughly 1000 tonnes of contained cobalt from the TECH Project.
Ultimately, the deal will include a three-to-five year offtake agreement.
According to TECH’s pre-feasibility study (PFS), the project is around 6000 tonnes of contained nickel (26,000 tonnes nickel sulphate) and 650,000 tonnes contained cobalt (3000 tonnes cobalt sulphate).
Pure and LG Chem will work together to evaluate the potential to increase the size and scale of the project to meet LG Chem’s demand.
LG Chem is South Korea’s largest diversified chemical company operating in the petrochemicals, energy solutions, advanced materials and life sciences areas.
“We are delighted at the opportunity to work with a world class company such as LG Chem to become a potential customer and partner of the TECH Project,” Pure CEO Stephen Grocott said.
“With LG Chem’s involvement, there is now potential to scale up the size of the
TECH Project to one which offers even more attractive capital efficiency,” Stephen added.
A larger scale TECH Project would help to reduce capital costs for nickel production, provide more favourable economics due to lower unit costs and increased revenue, increase QPM’s presence as a potential battery chemicals supplier as well as providing more jobs and opportunities for the Townsville community.
The companies will begin working on increasing the project and once the plant size is finalised, bankable feasibility studies and project approvals will begin.
Company shares are up 53.3 per cent on the back of today’s news, with shares trading for 4.6 cents at 11:47 am AEDT.
