Queensland Pacific Metals formation of a Strategic Partnership has been formalised by the signing of a non-binding Memorandum of Understanding with Société des Mines de la Tontouta.
Queensland Pacific Metals Highlights:
- The Partners QPM and SMT acknowledge that a stable and reliable supply of ore over the long term is essential for both Phase 1 and Phase 2 of the TECH Project for QPM.
- They both are also aware of the significance of ESG in the Electric Vehicle (“EV”) industry, and they believe that the combination of SMT’s world-class mining practises and the advantages of the TECH Project will be of great value.
The announcement that Queensland Pacific Metals Limited (ASX: QPM) has entered into a Strategic Partnership with the New Caledonian ore supplier SMT comes as very exciting news for the company. SMT will be able to take part in the long-term value that is created along the whole supply chain of battery materials, from the mined ore all the way up to the finished product, thanks to the partners’ consideration of and collaboration on investment potential in QPM.
Strategic Partnership
Société des Mines de la Tontouta (SMT) and Queensland Pacific Metals (QPM) had in the past entered into an ore supply agreement for the supply of up to 600,000 wmt laterite ore per annum. This arrangement was for the supplying of the ore. The Partners have now engaged into a Memorandum of Understanding (MOU) that is non-binding in regards to the formation of a Strategic Partnership for the purpose of expanding both Parties individual commercial interests. The Ballande Group is an internationally diverse company with its headquarters in New Caledonia. SMT is a subsidiary of the Ballande Group.
The Parties acknowledge the significance of the following:
- Queensland Pacific Metals acquisition of a stable and reliable ore supply for the long term for Phase 1 and Phase 2 of the TECH Project;
- SMT’s contribution to the improved short- and long-term employment possibilities in New Caledonia; and SMT’s participation in the long-term value of the total battery materials supply chain, which was established as a result of the company’s role as an ore producer.
- When it comes to supplying the western electric vehicle market, ESG credentials for mining and processing activities are extremely important. This is especially true for nickel, where there is a rising worry regarding the dominance of Indonesian supply.
The Partners will work together on the following areas as part of the Strategic Partnership:
- Opportunities for SMT to make investments in QPM that would enable it to share in the value created by the processing of its ore into battery chemicals
- Additional ore supply beyond the duration of the ore supply agreement that is currently in place for Phase 1 of the TECH Project
- Additional supply of ore for the TECH Project’s Phase 2
- Additional ore supply necessitates future mine expansion, which SMT must undertake
- Improving and sustaining ESG reporting standards at a world-class level, as well as setting new ones.
Dr. Stephen Grocott, Managing Director and CEO of QPM, reacted as follows:
I am delighted to extend our current supply relationship SMT into a broader strategic partnership which encompasses the framework for cooperation to deliver even greater value to both companies. SMT has been a strong supporter of the TECH Project for a long time and this MOU is a natural extension of our current collaboration. It is intended to assist Queensland Pacific Metals in underpinning the ore supply for not only Stage 1 but also Stage 2 and provide a pathway for SMT to participate in the value created through development of the TECH Project.
SMT General Manager, Arnaud Bondoux said:
Signing a nickel ore supply contract with QPM means renewing relations with Australia, which has always been a historical partner of SMT and New Caledonia. Indeed, exports between SMT and Australia have taken place over a period of more than 25 years, from 1989 until recently in 2015. SMT was involved in QPM’s innovative project from the outset by actively participating in the pilot tests. In fact, QPM and SMT have been in contact for four years now and have formed a partnership that led to the signing of a first MOU in 2017. SMT intends to make a long-term commitment to QPM, beyond its role as a supplier, in order to propose a new model for the valorisation of New Caledonian ore.
