Brisbane, Queensland, April 22, 2024 — Queensland Pacific Metals Ltd (ASX:QPM) ("QPM" or "the Company"), a leader in sustainable mining and energy solutions, today announced a strategic realignment of its operations to accelerate the growth and development of its gas and energy assets. This strategic shift emphasizes QPM's commitment to enhancing shareholder value and addressing the urgent energy needs in Eastern Australia.
Following a comprehensive review of its portfolio and market conditions, QPM has decided to prioritize the expansion and enhancement of its Moranbah Gas Project (MGP). This project is set to play a crucial role in bridging the forecasted gas supply shortfalls and supporting the electricity grid’s transition to renewable energy sources, as identified by recent Australian Energy Market Operator (AEMO) forecasts.
Key Strategic Initiatives:
- Increased Investment in Moranbah Gas Project: QPM plans to expedite the development of the MGP, leveraging its substantial uncontracted gas reserves to significantly boost production and supply capabilities.
- Reduction of Carbon Emissions: Through innovative management of coal mine waste gas, the company aims to not only reduce emissions but also convert this byproduct into a valuable energy resource.
- Enhancement of National Electricity Market (NEM) Participation: By expanding its generation capacity, QPM will support the grid with reliable baseload and peaking generation, crucial for maintaining stability as traditional coal power plants begin to retire.
In light of these new directions, QPM Energy's CEO, David Wrench, will take the helm as CEO of QPM. His leadership is expected to drive significant progress, building on his successful track record and deep industry expertise.
Revised Focus on TECH Project: Given the current challenging market conditions for nickel and battery metals, QPM will scale down further expenditures on its TECH Project. Nevertheless, the company remains dedicated to pursuing this initiative and will continue to explore alternative funding solutions and collaborations to advance the project.
Corporate Leadership Changes:
- John Abbott transitions from Chairperson to Non-Executive Director.
- Dr. Stephen Grocott shifts from Managing Director and CEO to Non-Executive Director, focusing on the TECH Project.
- Ariel “Eddie” King steps in as Interim Chairperson.
Upcoming Corporate Developments: QPM will propose a corporate name change to better reflect its new strategic focus, pending shareholder approval.
Incoming CEO David Wrench commented,
“Since completing the acquisition of the Moranbah Project, we have uncovered many exciting opportunities to grow production, reserves and customer sales. Accelerating these opportunities will position QPM Energy to take advantage of the tailwinds in the Australian gas and energy sector to deliver value for shareholders.”
Outgoing CEO Dr Stephen Grocott commented
“In light of underlying nickel market conditions, this is the right decision for the Company. History shows that nickel is a cyclical commodity and I look forward to working with the Company and key stakeholders to secure a pathway forward for the TECH Project. The underlying attractiveness of a low cost, clean nickel supply remains compelling over the next years.”
Contact details:
Jane Morgan