Queensland Pacific Metals Ltd (ASX:QPM) is excited to share the news of its Strategic Partnership with New Caledonian ore supplier Société des Mines de la Tontouta (SMT), a subsidiary of the Ballande Group. The agreement marks a milestone for both companies, who are committed to expanding their respective business interests while ensuring sustainable supply and environmental standards.
The non-binding Memorandum of Understanding (MOU) follows the previous ore supply agreement between QPM and SMT, which secures the annual supply of up to 600,000 wmt laterite ore for QPM's TECH Project's Phase 1 and Phase 2 (ASX announcement, June 2, 2022).
QPM's Managing Director and CEO, Dr. Stephen Grocott, said, “I am delighted to extend our current supply relationship with 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 QPM 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 the development of the TECH Project.”
The Strategic Partnership will enable both parties to work together on diverse investment opportunities within QPM, explore additional ore supplies for the TECH Project, and enhance world-class Environmental, Social, and Governance (ESG) standards. Additionally, the partnership highlights SMT's potential participation in long-term value creation throughout the battery materials supply chain, benefiting employment opportunities in New Caledonia.
SMT's General Manager, Arnaud Bondoux, reflected on the agreement: “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 valorization of New Caledonian ore.”
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About QPM:
Queensland Pacific Metals Ltd (ASX: QPM) is an emerging battery chemicals producer focused on the development of its TECH Project, which aims to become a significant, low-cost supplier of nickel and cobalt chemicals for the EV battery industry.
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Jane Morgan