Pure Minerals Limited (ASX:PM1) has entered into a non-binding Memorandum of Understanding (MOU) with Samsung SDI Co., Ltd for the supply of nickel from the TECH Project, 100% owned by its wholly owned subsidiary, Queensland Pacific Metals Pty Ltd (QPM).
Under the MOU, Samsung SDI is seeking to purchase up to 6,000t per annum of contained nickel from the TECH Project. Samsung SDI, a leading global player in the energy storage sector, is seeking to purchase this in a combination of mixed hydroxide precipitate (MHP) and final battery chemical sulphate forms.
As part of the MOU, PM1 and Samsung SDI have agreed to negotiate in good faith to enter into a binding offtake agreement for the purchase of nickel by Samsung SDI from the TECH Project. The initial term of the offtake agreement will be for three to five years. Pricing of the products will be linked to the underlying commodity prices on the London Metals Exchange, or some other mutually agreeable index, with consideration given to purity and specification.
PM1 and Samsung SDI will also work together to establish product specifications to be used in the offtake agreement that are acceptable to Samsung SDI and can be produced by PM1.
Chief Executive Officer, Stephen Grocott , said the term of the MOU is for 12 months, unless extended by mutual consent.
We are delighted at the opportunity to work with Samsung SDI to become a potential customer of the TECH Project,” Mr Grocott said.
We are consistently gaining traction with end users who view Pure Minerals as a potential part of their future supply chain. This is evident in the MOUs we have signed to date with LG Chem and Samsung SDI.
The TECH Project will utilise the DNi Process (Direct Nickel Process), which employs a nitric acid leach under atmospheric conditions, to produce intermediate products. These will then be further refined to produce battery chemicals.
The DNi Process has many advantages over traditional HPAL projects including:
- The ability to recover all valuable metals from the ore including nickel, cobalt, aluminium, iron and magnesium
- Shorter time frame and cheaper cost of construction as stainless steel can be used, which is not corroded by nitric acid
- >99% nitric acid recycled
- Lower environmental footprint – the remaining residue is a benign silicate which can be dry stacked, eliminating the need for a tailings dam