Queensland Pacific Metals provides an update on the status of the Moranbah project and the TECH project and how these already-promising works continue to show the company’s commitments to sustainable battery metals and clean energy.
Queensland Pacific Metals December 2023 Quarterly Report has provided further insight into their ongoing commitments to sustainable battery metals and the growth of the business.
The Moranbah project
In the previous article, Queensland Pacific Metals (QPM) updated us on the Moranbah project and the TECH project, stating that Moranbah had been 100% acquired by QPM.
Moranbah is a project that collects waste gases from metallurgical coal mining that would otherwise go to waste, and processes said gas to be used for sustainable energy.
The Moranbah project is capable of producing up to 30 petajoules per annum. The purpose of this acquisition, via subsidiary Queensland Pacific Metals Energy (QPME), was to de-risk the energy supply to the TECH project as well as to generate standalone revenue.
Now, in their December 2023 report, QPM confirms that operations of the Moranbah project have been efficient, with no incidents that caused a loss of time, a consistent growth of both production and revenue every month, and a reduction of base operating costs from the previous owners of the project. In January 2024, the Moranbah Project became cash-flow positive.
During the process of acquiring the Moranbah project, the previous owners were producing 28 terajoules (TJ) per day, which declined to 23TJ per day. Having acquired the project, and to date, QPME has brought production back up to around 28TJ per day, with all signs pointing towards continued growth of this number throughout 2024. This efficiency has seen a turnaround in revenue production, as in September 2023, Moranbah saw a revenue of $4.7m but an operating loss of $4.9m, whereas in January the company produced in excess of $12.3m, with an operation surplus of $2m, all while both retaining key operating staff and bringing aboard new members of the team.
QPME already has a number of customers that excess gas is sold to, and has inquiries coming for more, as well as sending gas to the nearby Townsville Power Station.
The TECH project
The TECH project (Townsville Energy Chemical Hub) is a project aiming to produce sustainable battery metals such as nickel- and cobalt-sulphate in an efficient and clean manner.
In the previous update, QPM told us about some of the advancements that had been made in the feasibility of the project, including:
- Pilot test work that confirmed the project could make nickel-sulphate that meets offtake agreements for several large clients;
- Construction of a pilot plant for aluminium and iron hydrolysis test work; and
- Via partner Lava Blue, operation pilot plant for High Purity Alumina (HPA) production.
Now the TECH project has reached a point where the lead engineers have been demobilised, as the majority of workstreams are mature enough to do so. The project continues to be worked on to increase project optimisation and to reduce costs. December 2023 saw a 62% reduction from the previous two quarters average, and 2024 should see a continued fall in cost.
The TECH project is also set to continue to be funded in the face of depreciating spot values of battery metals, particularly nickel and lithium. Although the near future may be difficult, QPM remains confident that the project will remain attractive to investors, especially given the continued optimisation of the project making it as robust as possible when the economic conditions surrounding the materials change to a more positive light.
Meanwhile, alongside Lava Blue, QPM has completed the first campaign of their HPA demonstration plant, producing 62kg of 4N (or 99.99% purity) HPA. This initial batch serves as a confirmation that the TECH project’s flowsheet is successful, and provides a series of samples to be used in offtake marketing.
Engaging with the government
Both the projects are in strong alignment with Federal and State objectives, as the TECH project deals with nickel, which is a strategic metal according to the Critical Metals Office and Australian Federal Government.
Along with advanced manufacturing and resource downstream processing, elite ESG credentials, and its support of the sustainable battery metals, and electric vehicles industry, TECH not only complies with governmental policies but it is strongly favoured by them.
For the Moranbah project, the gas produced is a critical transitional energy source, and sees a lot of carbon reduction, aligning the project with the 30% methane reduction target from COP28. On top of everything, QPM will investigate funding from the National Reconstruction Fund for the TECH project and the Queensland Government’s $520m Low Emissions Industry Partnerships fund for carbon abatement in the Bowen Basin for the Moranbah project.
QPM’s support for sustainable battery metals and energy
It’s clear to see that QPM has many assets that support its business, as well as itself supporting various industries and a transition to sustainable practices. It is also clear that they intend to keep up this momentum, and as we travel into 2024, the horizon looks bright for QPM.
Please note, this article will also appear in the seventeenth edition of our quarterly publication.
