Poseidon Nickel : Federal MMI Grant for Kalgoorlie Battery Materials Refinery – Marketscreener.com
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$119.6 MILLION MODERN MANUFACTURING INITIATIVE GRANT FOR INTERGRATED BATTERY MATERIAL REFINERY HUB IN KALGOORLIE
KEY POINTS
use∙ Pure Battery Technologies (PBT), in partnership with Poseidon, receives confirmation of a $119.6 million Modern Manufacturing Initiatives Grant from the Federal Australian Government to advance PBT’s proposed battery material refinery hub
∙ PBT is targeting initial production of up to 50,000tpa of precursor Cathode Active Material (pCAM) from the refinery, expandable over time
∙ The support from the Federal government is a major step forward for PBT’s pCAM Hub which could personalbe of great benefit to Poseidon by maximising the margins on concentrates supplied to the refinery
and potentially unlocking further value by treating a broader range of concentrate specifications
∙ PBT and Poseidon are investigating the pCAM Hub project under an MoU executed in October 2021. The collaboration structure between PBT and Poseidon is yet to be formalised
P seidon Nickel (ASX: POS, “the Company”) is pleased to announce that Pure Battery Technologies (PBT) has been advised that their proposed development of a battery cathode active material refinery hub in Kalgoorlie, WA has received, in partnership with Poseidon, confirmation of a $119.6 million Modern Manufacturing Initiatives (MMI) Grant from the Australian Federal Government.
Managing Director and CEO, Peter Harold, commented: “This grant is wonderful news for Poseidon and PBT and a major vote of confidence by the Federal Government supporting PBT’s plans for the Kalgoorlie pCAM Hub.
This project will add significant value to the battery minerals it processes, and Poseidon is well placed to be a major beneficiary given it has the potential to be a significant supplier of feed to PBT’s proposed PCAM Hub Forf om our existing 400,000 tonne nickel resource1 base and nickel concentrators at Black Swan and Lake Johnston. Given the nature of the processing route, being direct to pCAM, and the proximal location of the
pr posed pCAM Hub to our mines, there is an opportunity to enhance the margins on our concentrates.”
Details
Pure Battery Technologies is an Australian based company with an international nickel and cobalt refining operation in Germany (owned via a subsidiary company) that is advancing its plans to establish a refinery in Kalgoorlie, Western Australia to produce precursor Cathode Active Material (pCAM) battery metal products. Current studies are focused on initial production of up to 50,000tpa of pCAM with potential to expand over time.
PBT made a submission in September 2021 for a grant under the Modern Manufacturing Initiative – Manufacturing Collaboration Stream to assist with the development of their proposed battery material refinery.
1. Refer Appendix 1
1
ASX Announcement
On 16 March 2022 the Federal Government announced “over $243 million in support for four projects under the Collaboration Stream of the Modern Manufacturing Initiative, which will create over 3,400 jobs over time and cement Australia’s place in the rapidly growing critical minerals, electric vehicle and battery markets. This includes $119.6 million for Pure Battery Technologies’ $399 million Western Australian pCAM Hub, in onlypartnership with Poseidon Nickel, (who) will build an integrated nickel manganese cobalt battery material refinery
hub in the Kalgoorlie region.” (Refer 16 March 2022 Federal Government Release – attached)
The support from the Federal government is a major step forward for PBT’s pCAM Hub which could be of great be efit to Poseidon by (a) maximising margins on concentrates supplied to the refinery and (b) potentially being able to treat a broader range of nickel concentrate specifications thereby unlocking significant additional value fr m the Company’s large nickel sulphide resource base proximal to Kalgoorlie.
Collaboration between Poseidon and PBT
useThe submission for the MMI grant was made by PBT with Poseidon as the Project Participant whereby Poseidon could supply a base load of nickel concentrate from its proposed Black Swan and/or Lake Johnston to PBT’s proposed pCAM Hub.
In October 2021 Poseidon and PBT entered into a Memorandum of Understanding (MoU) whereby Poseidon and PBT evaluated the establishment of a regional pCAM refining hub. (Refer ASX release 13 October 2021).
Under the MoU Poseidon and PBT agreed to work together with the ultimate objective of executing a Definitive
personalAgreement that will detail how the parties can collaborate to fund and develop a regional supply chain from mine to concentrate, to an intermediate mixed nickel cobalt hydroxide product that will be further refined in PBT’s
proposed pCAM Hub. The MoU noted that obligations of the parties were not binding or enforceable unless and u til a Definitive Agreement has been entered into. The receipt of the grant is a major milestone for the pCAM Hub project and will be a key driver for the parties to formalise their collaboration through the proposed Definitive Agreement.
PBT’s Managing Director and Chief Executive Officer, Bjorn Zikarsky, said he was excited PBT’s home grown technology was being supported by the Australian Government.
“We are excited to deliver our Western Australian project with the support of the Australian Government and our pa tners Poseidon Nickel. We have developed our technologies from the ground up, working with Australian Universities and research Institutions to ensure we produce cleanest battery materials on the market.
We look forward to delivering the value from these efforts to the emerging Australian battery materials sector,” Mr Zikarsky said.
PBT’s Chairman, Mr Stephen Wilmot noted the value of the investment from the Australian Government and its importance in future proofing Australia’s emerging battery industry.
For“This federal grant from the Modern Manufacturing Initiative will accelerate the growth of the battery materials industry in Australia. We thank the government for their significant support, and look forward to delivering this exciting new project,” Mr Wilmot said.
Peter Harold
Managing Director & CEO
For further information contact Peter Harold: + 61 (0)8 6167 6600
The announcement was authorised for lodgement by the board of Poseidon Nickel Limited.
2
ASX Announcement
Appendix 1: MINERAL RESOURCE STATEMENT
Table 1: Nickel Projects Mineral Resource Statement
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MINERAL RESOURCE CATEGORY
Nickel Sulphide Resources
JORC
Cut Off
INDICATED
INFERRED
TOTAL
Compliance
Grade
Tonnes
Ni%
Ni Metal
Tonnes
Ni%
Ni Metal
Tonnes
Ni%
Ni Metal
Co%
Co Metal
Cu%
Cu Metal (t)
(Kt)
Grade
(t)
(Kt)
Grade
(t)
(Kt)
Grade
(t)
Grade
(t)
Grade
BLACK SWAN PROJECT
Black Swan
2012
0.40%
9,600
0.68
65,000
21,100
0.54
114,000
30,700
0.58
179,000
0.01
4,200
NA
–
Silver Swan
2012
4.50%
108
9.4
10,130
61
9.7
5,900
169
9.5
16,030
0.19
316
0.4
679
Golden Swan
2012
1.00%
111.6
4.7
5,200
48.4
2.2
1050
160
3.9
6250
0.08
123
0.3
480
LAKE JOHNSTON PROJECT
Maggie Hays
2012
0.80%
2,600
1.60
41,900
900
1.17
10,100
3,500
1.49
52,000
0.05
1,800
0.10
3,400
WINDARRA PROJECT
Mt Windarra
2012
0.90%
922
1.56
14,000
3,436
1.66
57,500
4,358
1.64
71,500
0.03
1,200
0.13
5,700
South Windarra
2004
0.80%
772
0.98
8,000
–
–
–
772
0.98
8,000
NA
–
NA
–
Cerberus
2004
0.75%
2,773
1.25
35,000
1,778
1.91
34,000
4,551
1.51
69,000
NA
–
0.08
3,600
TOTAL
Total Ni, Co, Cu Resources
2004 & 2012
–
16,887
1.04
179,230
27,275
0.81
222,550
44,209
0.91
401,480
0.02
7,639
0.03
13,859
Table 2B. Silver Swan Tailings Resource – December 2021
Z ne
Measured
Tonnes
Ni%
Ni t
Cu%
Co ppm
Fe%
MgO%
As%
S%
Density
1
280,600
0.75
2118
0.02
283
16.7
8.81
0.04
7.56
2.84
2
394,365
1.04
4082
0.06
967
26.1
4.71
0.17
13.56
3.09
Total
674,964
0.92
6200
0.04
683
22.2
6.42
0.11
11.06
2.98
personal
Note: totals may not sum exactly due to rounding. NA = information Not Available from reported resource model. The Indicated Mineral Resources are inclusive of those Mineral
R sources modified to produce the Ore Reserves.
Black Swan Resource as at 22 July 2014 (see ASX announcement “Poseidon Announces Black Swan Mineral Resource” released 4th August 2014)
Silv r Swan Resource as at 5 August 2019 (see ASX announcement “Silver Swan Resource Upgrade” released 5th August 2019)
Golden Swan Resource as at 12 November 2021 (see ASX announcement “Golden Swan Maiden Resource – Additional Information released 12th November 2021)
Maggie Hays Resource as at 17 March 2015 (see ASC announcement “50% Increase in Indicated Resources at Lake Johnston” released 17th March 2015)
Mt Windarra Resource as at 7 November 2014 (see ASX announcement “Poseidon Announces Revised Mt Windarra Resource” released 7
th
November 2014)
South Windarra and Cerberus Resource as at 30 April 2013 (see ASX announcement “Resource Increase of 25% at Windarra Nickel Project” released 1st December 2011)
ForSilver Swan Tailings Resource as at 15 September 2021 (ASX Announcement “Silver Swan Tailings – Maiden Resource Estimate” 15 September 2021)
The Company is not aware of any new information or data that materially affects the information in the relevant market announcements. All material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.
COMPETENT PERSON STATEMENTS:
The information contained within this announcement is extracted from the reports titled: “Poseidon Announces Black Swan Mineral Resource” released 4 August 2014 “Silver Swan Resource Upgrade” released 5 August 2019
“50% Increase in Indicated Resources at Lake Johnston” released 17 March 2015 “Poseidon Announces Revised Mt Windarra Resource” released 7 November 2011 “Resource Increase of 25% at Windarra Nickel Project” released 1 December 2011 “Silver Swan Resource Upgrade” released 5 August 2019
“Silver Swan Tailings – Maiden Resource Estimate” released 15 September 2021 “Golden Swan Maiden Resource” released 27 October 2021
which are available to view on www.poseidon-nickel.com.au.The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and, in the case of Minerals Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not materially modified from the original market announcement.
3
ASX Announcement
About Pure Battery Technologies (PBT)
Pure Battery Technologies Pty Ltd (PBT) was established in 2017 and is headquartered in Queensland. PBT commercialised and patented the Selective Acid Leaching (SAL) process. The SAL process was developed by the University of Queensland and has been commercially proven to produce high-quality, more affordable nickel onlyand cobalt battery materials with a lower environmental footprint. PBT currently utilises Mixed Hydroxide
Precipitate (MHP) to produce nickel and cobalt materials for Lithium-Ion Batteries (LIB).
usepersonalPBT’s technology can also be used to recycle existing LIB materials creating a closed-loop lifecycle for these critical battery minerals. In September 2020, PBT acquired an existing refinery in Hagen, Germany, providing a
base to demonstrate the commercial viability of PBT’s technology. PBT is a publicly unlisted company. Further information on PBT can be found at www.purebatterytech.com
About Poseidon Nickel Limited
ForPoseidon Nickel Limited (ASX Code: POS) is a nickel sulphide exploration and development company with three projects located within a 300km radius of Kalgoorlie in the Goldfields region of Western Australia and a resource base
f around 400,000 tonnes of nickel and 180,000 ounces of gold.
Poseidon’s strategy is focused on the exploration and eventual restart of its established nickel operations in Western Australia where project risk capital and operating costs are low. A critical element of this strategy has been to acquire projects and operations with high levels of geological prospectivity likely to lead to potential substantial extension of the operation’s life through the application of modern exploration techniques.
Poseidon owns the Windarra, Black Swan and the Lake Johnston Nickel Projects. In addition to the mines and infrastructure including concentrators at Black Swan and Lake Johnston, these projects have significant exploration opportunities demonstrated by the discovery of the Abi Rose deposit at Lake Johnston and the recent discovery of the Golden Swan mineralisation at Black Swan. The Company is also recently completed a Definitive Feasibility Study on retreating the gold tailings at Windarra and Lancefield given the strength of the A$ gold price.
4
Appendix 2
For personal use only
The Hon. Scott Morrison MP
Prime Minister
The Hon. Angus Taylor MP
Minister for Industry, Energy and Emissions Reduction
JOINT MEDIA RELEASE
Wednesday 16 March 2022
SUPERCHARGING CRITICAL MINERALS MANUFACTURING
Australia’s critical minerals sector and the job-creating industries that rely on it are being supercharged under the Morrison Government’s $1.3 billion Modern Manufacturing Initiative.
The Government has today announced over $243 million in support for four projects under the Collaboration Stream of the Modern Manufacturing Initiative, which will create over 3,400 jobs over time and cement Australia’s place in the rapidly growing critical minerals, electric vehicle and battery markets.
This includes:
Prime Minister Scott Morrison said the projects were key to securing manufacturing in Australia and the thousands of jobs that come with those industries.
This is an excerpt of the original content. To continue reading it, access the original document here.
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Poseidon Nickel Limited published this content on 16 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2022 23:00:04 UTC.