Townsville’s TECH project boosted by feasibility findings
QPM’s planned $1.9 billion green nickel refinery in Townsville has been boosted by a feasibility study showing its operating earnings of $546 million and an internal rate of return of 18.4 per cent.
QPM's Stephen Grocott
Known as the TECH project, it would have a pre-tax net present value of $2.6 billion, or $4.9 billion if stage two is delivered.
QPM said the study would allow it to proceed to debt funding. It has a proposal being considered by the Northern Australia Infrastructure Facility and Export Finance Australia has given conditional commitment of $250 million. K-Sure has also made a formal expression of interest to provide debt on terms similar to the EFA terms.
But the company said that before it reaches financial close it would update the capital estimate.
“Easing global inflation, particularly continued reductions in equipment manufacturing costs in the near term, will likely reduce the capital cost of constructing the TECH project,” QPM said.
A scoping study for a second phase expansion found that there would be a $350 million capital cost reduction on the stage one costs as a result of synergies.
QPM said there was a strong case for expansion following the commercialisation of stage one.
QPM managing director Stephen Grocott said the company was pleased with the results of the feasibility, but said there was still work to be done before a final investment decision.
