NQ resources companies make moves after $1.3bn Copperstring package
Key technology deals, acquisitions and milestones have been notched in North Queensland resources after a major funding announcement on Monday. See the latest big moves.
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North Queensland mining developers are making deals left, right and centre in the wake of the state government announcing $1.3bn to fast-track construction of Copperstring.
Copperstring is the transmission line that will go from Mount Isa to Townsville, connecting the North West Minerals province, with some $500bn to $700bn of critical minerals, to the national grid.
Wind and solar projects can hook up to the grid by the power line, and hopefully smaller mines can be established along the route with cheaper electricity.
“Connecting the largest renewable energy zone on the east coast of Australia with $500bn of Queensland’s critical minerals will certainly boost investor interest in renewable energy projects,” Vecco managing director Tom Northcott said.
Vecco is already operating Australia’s first commercial-scale vanadium flow battery electrolyte manufacturing plant, in Townsville, and wants to mine and process vanadium near Julia Creek.
The state government’s $1.3bn Copperstring development package was a vote of confidence in the state’s vanadium mining, processing and global exports, Mr Northcott said.
Processing the minerals that end up in electric vehicle batteries and mobile phones can pull in astounding income for companies based in North Queensland.
Critical Minerals Group (CMG) have made moves this week to cash in on that value-add potential.
CMG is developing the Lindfield Project — a vanadium and high purity alumina mine near Julia Creek.
The company announced a licence agreement this week with tech company Lava Blue to refine processing technology and develop a production stream at Lindfield.
Significant upside
Alumina is used in mobile phone camera lenses, LEDs and lithium-ion batteries.
CMG managing director Scott Winter said using the Lava Blue technology, they were able to achieve results “well beyond” initial expectations in a short period of time without extensive investigation.
Lava Blue, Queensland University of Technology, University of Queensland and the state government also have a three-year partnership to reduce waste from mining operations, specifically looking to recover high purity alumina from waste.
Making moves
CMG’s deal with Lava Blue allowed the miner to optimise its high purity alumina stream and identify other value-adding products, Mr Winter said.
After that announcement to the ASX on Tuesday, CMG on Wednesday revealed a scoping study had found the mine, which would cost at least $402 million in capital, was financially viable.
That study only included the vanadium and molybdenum ore, but Mr Winter said the alumina was seen as having significant upside.
CMG did however request a trading halt and intends to post further disclosure about the scoping study.
Resources Minister Scott Stewart knows there are positive signs for high purity alumina — the resource in every phone camera lens.
A high purity alumina mine in Gladstone had found there was a 1000 per cent increase in value when the resource was processed onshore.
“Every single person with a mobile phone will actually have that high purity alumina … hence the high grade, the high quality, but also the demand and need that we will see right around the world,” Mr Stewart said.
‘Not a game-changer, it is the game’
“Copperstring is the word on everyone’s lips and when we went to South Korea recently, after the World Mining Congress, they knew about Copperstring already,” Mr Stewart said.
“We were talking about our critical minerals plan and about unlocking the $500bn worth of critical minerals that we have in that North West Minerals Province.”
Ethical sourcing and production was driving consumer demand in South Korea, Europe and the US’s Inflation Reduction Bill includes $500bn of spending and tax breaks for clean energy, Mr Stewart said.
“People talk about the game changer. Copperstring is the game. That’s the difference. This is the game and it’s going to open up so many opportunities for us here,” he said.
Traeger MP Robbie Katter said providing the North West, for the first time, access to the national power grid would make the region even more enticing to Australian and international investors.
The $1.3bn Copperstring delivery package was signed off by state cabinet in Townsville on Monday.
The package will allow Powerlink to expedite key equipment orders, and bring a 100-staff delivery team on board to work through permits, particularly for temporary worker accommodation.
Investors and developers buoyed by Copperstring
QEM is developing a vanadium and oil shale project near Julia Creek, and is in negotiations with a short-listed bidder to develop, own and operate an adjacent 1GW wind and solar farm.
“The government’s increased investment gives developers like QEM even greater impetus for our projects,” QEM chief executive Gavin Loyden said.
Copperstring was a catalyst for development of the in-situ metals beneath the surface in the North West Minerals Province and the wind and solar resources above it, he said.
Powered by renewables, Powerlink is also building a national-grid-connected 186km transmission line from Mount Fox to Kidston, which notched a key milestone this week.
The first of 348, 60-metre towers went up, which will transmit hydro, solar and wind energy.
While these companies position themselves to develop critical minerals mines, powered by the wind and sun, the resource that’s driven many-a rush and migration waves is not to be forgotten; gold.
Native Minerals Resources (NMR) announced on Wednesday it had signed an exclusivity agreement for two deposits near Charters Towers which were advanced, near-ready gold projects.
NMR signed the deal with Ashby Mining, for the Far Fanning and Black Jack deposits.
The deal is dependent on Charters Towers-centric Ashby Mining listing on the ASX, which is planned for this month.
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Originally published as NQ resources companies make moves after $1.3bn Copperstring package
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