- Clean TeQ is continuing to develop its business strategy with its Sunrise Battery Materials project in NSW
- This project is one of the biggest, lowest-cost nickel-cobalt projects in the world
- The company has been working vigorously on bringing this project into production and is currently working on an execution plan to be finished before the final investment decision next year
- Clean TeQ’s share price is up 5.56 per cent, with shares trading at 28.5 cents each
Clean TeQ Holdings has reported on strategy and engineering progress at its Clean TeQ Sunrise Battery Materials Complex in central New South Wales.
Currently, the company is reviewing a variety of project delivery options for the next phase of the Sunrise Project.
The Sunrise Project is one of the largest cobalt deposits outside of Africa. It is also one of the largest and highest-grade accumulations of scandium known to ever discover.
At this stage, Sunrise is under development. A Definitive Feasibility Study (DFS) was completed in 2018, which highlighted the project as a sustainable, low-cost source of high purity cobalt and nickel sulphates for the battery revolution.
Over the past 12 months, Clean TeQ has been working on plant design, key equipment needed, design services, hazard studies and non-process plant infrastructure.
These works are reportedly running behind schedule, however sufficient work has been completed to position Sunrise as ready for a final investment decision in mid-2020.
Through a comprehensive review, Clean TeQ has chosen to transition to a conventional Engineering, Procurement and Construction Management (EPCM) execution approach.
Under an EPCM approach, the company will work with Fluor Australia, the Sunrise Project Management Contractor (PMC). Fluor will provide a comprehensive Project Execution Plan.
“This approach will ensure clear visibility over cost and schedule while managing execution risk,” Company Managing Director and CEO Sam Riggall said.
Fluor has 53,000 employees across the world and maintains a strong presence in Australia.
Together, Clean TeQ and Fluor will deliver the plan to achieve an updated capital cost estimate, incorporating design and engineering work to date and a revised master schedule for the engineering, procurement, construction and commissioning of Sunrise.
In June of this year, the company appointed Macquarie Capital to run a partnering process for its project.
A number of parties are engaged with the Sunrise partnering process, with their interest stemming from strong metal price movements and the electric vehicle and battery industry.
Clean TeQ is looking to conclude this process in the first half of next year to align with its final investment decision.
The company’s share price is up 5.56 per cent, with shares trading at 28.5 cents apiece as at 2:10 pm AEDT.