Qld Resources Minister approves Greenvale nickel, cobalt mine

The state Resources Minister has approved a new mine that will bring 780 ‘good jobs’ to North Queensland. Here’s why the move is key for Queensland.

A 780-job critical minerals project near Greenvale which is set to supply battery-grade nickel and cobalt has been approved by the state government.

LG Energy Solution has entered a binding offtake agreement with the mine owners and the operation is set to begin in 2028, from the site 220km northwest of Townsville.

The lease belongs to Sconi Mining Operations, a wholly owned subsidiary of ASX-listed Australian Mines.

Resources Minister Scott Stewart approved the mining lease on Tuesday and it was announced on the ASX on Wednesday.

“The Sconi Project is a vote of confidence in Queensland’s resources sector and means more good jobs for the state’s north,” Mr Stewart said.

The government has approved previous mining leases at the site.

About 300 jobs were expected to be available during mine operation and the remaining 480 during construction.

A 2019 schematic showing Australian Mines' indicative design for a nickel, cobalt and scandium refinery at Greenvale.

“Around the world communities are demanding and making the shift towards a cleaner, greener low-emission economy,” Mr Stewart said.

“Queensland has an abundance of the critical minerals the world needs to decarbonise.”

Resources Minister Scott Stewart, centre, this week approved mining leases for Australian Mines’ Sconi Project near Greenvale. Picture: Shae Beplate

The estimated $1.4bn project has a life expectancy of 30 years, processing two million tonnes of ore per year.

The open-cut mine and the adjoining processing plant is expected to produce about 47,000 tonnes of nickel sulfate, 7000 tonnes of cobalt sulfate and 89 tonnes of scandium oxide.

These critical minerals are used for electric car batteries.

A former nickel mining town, Greenvale and its surrounding areas have been of interest to various resources companies and even the Singaporean military in recent years.

The state government announced a rent-free mineral exploration scheme last week.

A 2019 picture of test drilling at the Sconi project near Greenvale.

The government will forgo $55m in revenue across the next five years under the scheme.

The announcement was made at the World Mining Congress in Brisbane last week, where Federal Treasurer Jim Chalmers said mining was responsible for $2 in every $10 of the government’s revenue.

Australian Mines’ share price has been in decline for the past 15 months, falling from $0.232 to $0.02.

Last year Australian Mines director Benjamin Bell resigned and the company paid $505,550 in penalties and costs for contravening Australian Securities Exchange disclosure obligations.

Originally published as Qld Resources Minister approves Greenvale nickel, cobalt mine