Queensland Pacific Metals Ltd (ASX:QPM) has struck a binding ore supply deal with New Caledonian company Société Minière Georges Montagnat (SMGM), one of the original supporters of QPM and the TECH Project.
The companies have formalised the 10-year ore supply agreement for up to 200,000 wmt per annum, targeting a typical limonite ore specification of 1.5% nickel and 0.18% cobalt.
QPM had previously had its ore supply tonnage covered in contracts with Société Le Nickel (SLN) and Société des Mines de la Tontouta (SMT).
This agreement with SMGM adds further diversification to QPM’s ore suppliers, providing additional comfort to financiers with regard to security of ore supply.
“I am pleased to enter into this agreement with SMGM,” QPM managing director Dr Stephen Grocott said.
“We now have agreements with three mining companies in New Caledonia, strengthening our ties to the country and increasing our security of ore supply.
Supporter of the TECH project
“SMGM has been a strong supporter of the TECH Project for a long time and we look forward to having a long-term partnership that delivers value to both companies.”
SMGM managing director Xavier Gravelat added: “Our company is pleased to provide its ore to a modern and innovative project designed to produce good quality nickel that is respectful of environmental issues.
“It is a great satisfaction to be able to contribute to the development of a clean and sustainable nickel.”
Learn more: Investing.com