{"id":15291,"date":"2025-02-24T14:53:26","date_gmt":"2025-02-24T14:53:26","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/24\/fpx-nickel-scoping-study-for-north-americas-largest-nickel-sulphate-refinery-outlines-low-cost-and-low-carbon-supply-for-the-ev-battery-supply-chain\/"},"modified":"2025-02-24T14:53:26","modified_gmt":"2025-02-24T14:53:26","slug":"fpx-nickel-scoping-study-for-north-americas-largest-nickel-sulphate-refinery-outlines-low-cost-and-low-carbon-supply-for-the-ev-battery-supply-chain","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/24\/fpx-nickel-scoping-study-for-north-americas-largest-nickel-sulphate-refinery-outlines-low-cost-and-low-carbon-supply-for-the-ev-battery-supply-chain\/","title":{"rendered":"FPX Nickel Scoping Study for North America\u2019s Largest Nickel Sulphate Refinery Outlines Low-Cost and Low-Carbon Supply for the EV Battery Supply Chain"},"content":{"rendered":"<\/p>\n
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\u00a0FPX Nickel Corp. (TSXV: FPX) (OTCQB: FPOCF) (\u2018 FPX \u2018 or the \u2018 Company \u2018) is pleased to announce results from an Awaruite Refinery Scoping Study (the \u2018 Study \u2018) which demonstrates a compelling business case for the development of a standalone refinery (the \u2018 Refinery \u2018) to refine awaruite concentrate into battery-grade nickel sulphate for the electric vehicle (\u2018 EV \u2018) industry, along with producing valuable cobalt, copper, and ammonium sulphate by-products.<\/p>\n

The Study has been prepared by Wood Canada Limited and all amounts are in US Dollars unless otherwise indicated. \u00a0The Study relates to a standalone industrial project and anticipates the production of awaruite ore from projects that are not limited to mineral projects of the Company; without limiting the foregoing, the Study is separate and standalone from the Baptiste Nickel Project, which demonstrated the technical and commercial advantage of mining and concentrating awaruite ore to a high-grade awaruite concentrate. <\/p>\n

Highlights <\/p>\n

Strong Economics: After-tax NPV 8% of $445 million <\/span> and IRR of 20% at $8.50 <\/span> \/lb Ni
\n Large-Scale, Long Life <\/span> : 40-year operating life producing 32,000 tpa of nickel contained in battery-grade nickel sulphate
\n Valuable Products: Production of battery-grade nickel sulphate for the EV industry, and by-products including cobalt, copper, and ammonium sulphate, a valuable fertilizer product for the agricultural sector
\n Low Cost: Total estimated operating costs of $1,598 <\/span> \/t Ni, or $133 <\/span> \/t Ni ( $0.06 <\/span> \/lb Ni) on a by-product basis for refining awaruite concentrate to battery-grade nickel sulphate, resulting in total all-in production costs of $8,290 <\/span> \/t Ni ( $3.76 <\/span> \/lb Ni) for nickel sulphate generated from awaruite mineralization (inclusive of mining, processing, refining, on a by-product basis), with both figures ranking in the lowest decile of the respective global nickel sulphate cost curves
\n Low Carbon <\/span> : A carbon intensity of 0.2 tCO2\/t Ni for refining operations, resulting in a total all-in carbon intensity of 1.4 t CO2\/t Ni for nickel sulphate generated from awaruite mineralization, which is magnitudes lower than current nickel sulphate production routes <\/p>\n

\u2018This Study confirms the disruptive potential of awaruite concentrate as an ideal feedstock for the production of battery-grade nickel sulphate for the automotive sector,\u2019 commented Martin Turenne <\/span> , FPX Nickel\u2019s Chief Executive Officer and President.\u00a0 \u2018The Study reinforces the opportunity for the development of an integrated, made-in- Canada <\/span> solution from mine-to-battery, utilizing awaruite concentrate as a lynchpin source of nickel, with conventional refining steps underpinning low-cost, low-carbon nickel production for use in domestic and allied country EV battery supply chains.\u2019 <\/p>\n

\n<\/div>\n
\n<\/div>\n

Background <\/p>\n

FPX commenced development of the Study in October 2024 <\/span> to further demonstrate the economic and strategic opportunity to refine awaruite concentrates to battery-grade nickel sulphate and other valuable by-products. This Study incorporates the flowsheet advancements outlined in the Company\u2019s previously reported pilot-scale hydrometallurgical testwork results (see FPX news release dated October 15, 2024 <\/span> ). <\/p>\n

Scoping Study Overview <\/p>\n

The mine-to-battery pathway for awaruite mineralization is presented in Figure 3. At a mine site, awaruite mineralization could be subjected to a simple mineral processing flowsheet to produce a high-grade awaruite concentrate, which could then be marketed either to the stainless steel or EV battery supply chains. This Study envisions purchasing of such awaruite concentrate and refining to battery-grade nickel sulphate, which would then be marketed to precursor cathode active material (\u2018 PCAM \u2018) and cathode active material (\u2018 CAM \u2018) producers to further process the nickel sulphate into CAM, a direct input in EV battery cell fabrication. <\/p>\n

\n<\/div>\n

This Study outlines a mid-stream Refinery located in an industrial location in central British Columbia <\/span> which will be fed with\u00a0awaruite concentrate and produce battery-grade nickel sulphate. The Study considers a Refinery capable of producing 32,000 tonnes per year of contained nickel in battery-grade nickel sulphate. <\/p>\n

In addition to nickel sulphate, the Refinery will produce three by-products, approximately as follows: <\/p>\n

570 tonnes per year of contained cobalt in cobalt carbonate;
\n 240 tonnes per year of contained copper in copper cement; and
\n 87,400 tonnes per year of ammonium\u00a0sulphate, a valuable fertilizer product. <\/p>\n

The Refinery would process commercially available awaruite concentrate. Published metallurgical testwork on awaruite (Ni 3 Fe) nickel ores has shown that a relatively simple mineral processing flowsheet utilizing magnetic separation followed by conventional froth flotation can produce a highly desirable awaruite concentrate that presents flexibility for downstream consumption. Considering other awaruite nickel projects in development by FPX and others, a refinery operation lifespan of 40 years is considered. <\/p>\n

Study economics are presented in Table 1, demonstrating the Refinery has robust economics while producing meaningful quantities of battery-grade nickel sulphate for the EV supply chain. <\/p>\n

Table 1 \u2013 Awaruite Refinery Scoping Study Economics <\/p>\n

\n
\n

Criteria <\/span><\/p>\n

Units <\/span><\/p>\n

Value <\/span><\/p>\n

Initial Capital Cost <\/span><\/p>\n

$, millions <\/span><\/p>\n

$424 <\/span><\/p>\n

Operating Cost <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$1,598 <\/span><\/p>\n

Operating Cost, net of by-products <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$133 <\/span><\/p>\n

After- Tax <\/span><\/p>\n

NPV 8% <\/span><\/p>\n

$, millions <\/span><\/p>\n

$445 <\/span><\/p>\n

IRR <\/span><\/p>\n

% <\/span><\/p>\n

20 <\/span><\/p>\n

Payback Period <\/span><\/p>\n

Years <\/span><\/p>\n

4.0 <\/span><\/p>\n<\/div>\n<\/div>\n

The Refinery\u2019s operating costs excluding byproduct credits ( $1,598 <\/span> \/t nickel contained) would fall within the lowest\u00a0decile of global production as per Benchmark Mineral Intelligence\u2019s (\u2018 Benchmark \u2018) nickel sulphate cost model, as presented in Figure 1.\u00a0 When byproduct credits are included, the Refinery would have a lower production cost that any current global producer. <\/p>\n

The Refinery will be supplied with low-carbon power from the BC Hydro grid, resulting in a carbon intensity of 0.2 t CO 2 \/tNi.\u00a0 As presented in Figure 2, this is magnitudes lower than current nickel sulphate production routes. <\/p>\n

According to Benchmark\u2019s database, the 2024 annualized nickel sulphate production market size was approximately 657,000 tonnes per year of contained nickel as of the fourth quarter of 2024, with production heavily dominated by China <\/span> at 76%, as presented in Figure 4.\u00a0 Additionally, less than 1% of current nickel sulphate production is North American (3,300 tonnes per year of contained nickel).\u00a0 As such, the 32,000 tonnes per year of high-quality nickel sulphate produced by the Refinery in Canada <\/span> would represent an approximate tenfold increase in current North American nickel sulphate production. <\/p>\n

\n<\/div>\n

Metallurgy & Process Design <\/p>\n

The metallurgical testwork program involved multiple bench- and a pilot-scale campaigns (see FPX news release dated October 15, 2024 <\/span> ). The latest testwork campaign involved continuous pilot-scale testing of leaching unit operations and confirmed the leaching flowsheet. Nickel leach extractions greater than 99% and production of low-impurity leach solution, suitable for downstream purification and crystallization, were simultaneously achieved during piloting. In addition, bench-scale testing of solution purification and crystallization unit operations demonstrated the ability to produce battery-grade nickel sulphate crystals using the new ammonia-based flowsheet. Incorporating testwork results, the refining strategy takes advantage of awaruite\u2019s characteristics in a simple flowsheet utilizing well proven unit operations, as presented in Figure 5. <\/p>\n

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Refinery Process Description <\/p>\n

In the leaching area, awaruite concentrate is first subjected to an atmospheric leach, which serves the dual purpose of 1) commencing awaruite dissolution, and 2) using awaruite as a reagent to neutralize free acid and precipitate remaining iron, aluminum, and chromium from the pressure leach solution. Any unleached awaruite is then further leached in a mild pressure oxidation circuit, where full awaruite dissolution is achieved in tandem with initial iron precipitation. Pressure leach solution then reports to the atmospheric leach circuit and pressure leach residue is dewatered for disposal. A slipstream of pressure leach solution is processed in a copper removal circuit, where a copper cement grading approximately 70 to 80% copper is produced. <\/p>\n

The final leach solution, grading 100 g\/l nickel, is first processed in a solvent extraction (\u2018 SX \u2018) circuit to extract cobalt.\u00a0 Extracted cobalt is then precipitated from the cobalt-rich solution as a carbonate product grading approximately 50% cobalt. While a cobalt carbonate product was selected for the Study, FPX testwork has also demonstrated the ability to produce cobalt-rich mixed hydroxide precipitate (\u2018 MHP \u2018). <\/p>\n

Nickel is then extracted away from the cobalt depleted leach solution to produce a purified and concentrated stream of nickel sulphate which is then crystallized into battery-grade nickel sulphate crystals suitable for use in the EV supply chain. <\/p>\n

The nickel depleted leach solution is then treated to sequentially removal trace levels of nickel and magnesium. This purified stream is then crystallized into ammonium sulphate crystals, a widely used industrial fertilizer. Miscellaneous minor process streams are also processed in the ammonium sulphate crystallizer which enables the refinery to operate as a zero liquid discharge facility. <\/p>\n

Capital Cost Estimate <\/p>\n

Initial capital costs have been estimated in alignment with AACE (Association for the Advancement of Cost Engineering) Class 5 standards, while sustaining and closure capital costs have been estimated on an order-of-magnitude (\u2018 OOM \u2018) basis. The total initial capital cost for the Project is estimated to be $424 million <\/span> , with no expansion considered.\u00a0 Total sustaining capital cost is estimated to be $40 million <\/span> and total closure capital cost is estimated to be $42 million <\/span> .\u00a0 No salvage value is considered due to the 40-year operation life. <\/p>\n

Table 2 \u2013 Total Estimated Capital Costs <\/p>\n

\n
\n

Capital Cost Type <\/span><\/p>\n

Category <\/span><\/p>\n

Total <\/span><\/p>\n

($, millions) <\/span><\/p>\n

Notes <\/span><\/p>\n

Initial Capital <\/span><\/p>\n

Costs <\/span><\/p>\n

Refinery Process <\/span><\/p>\n

$152 <\/span><\/p>\n

Reagents <\/span><\/p>\n

$45 <\/span><\/p>\n

Utilities, Services, & Infrastructure <\/span><\/p>\n

$40 <\/span><\/p>\n

Total Direct Costs <\/span><\/p>\n

$237 <\/span><\/p>\n

Indirect Costs <\/span><\/p>\n

$81 <\/span><\/p>\n

34% of Direct Costs <\/span><\/p>\n

Contingency <\/span><\/p>\n

$89 <\/span><\/p>\n

28% of Direct and Indirect Costs <\/span><\/p>\n

Owners Costs <\/span><\/p>\n

$18 <\/span><\/p>\n

Total Initial Capital <\/span><\/p>\n

$424 <\/span><\/p>\n

Total Sustaining Capital Costs <\/span><\/p>\n

$40 <\/span><\/p>\n

Expended years 1-40 <\/span><\/p>\n

Total Closure Capital Costs <\/span><\/p>\n

$42 <\/span><\/p>\n

Expended years 41-42 <\/span><\/p>\n

Total Capital Costs <\/span><\/p>\n

$506 <\/span><\/p>\n<\/div>\n<\/div>\n

Operating Cost Estimate <\/p>\n

Total operating costs are estimated to average $1,598 <\/span> per tonne of nickel produced before by-product credits, with a breakdown of these costs by cost centre presented in Table 3. The net operating cost inclusive of by-product credits for cobalt, copper, and ammonium sulphate is $133 <\/span> \/t Ni ( $0.06 <\/span> \/lb Ni). <\/p>\n

Table 3 \u2013Estimated Operating Costs (excludes by-product credits) <\/p>\n

\n
\n

Category <\/span><\/p>\n

Units <\/span><\/p>\n

Value <\/span><\/p>\n

Reagents <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$757 <\/span><\/p>\n

Consumables <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$264 <\/span><\/p>\n

Labour <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$258 <\/span><\/p>\n

Maintenance <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$136 <\/span><\/p>\n

Power <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$69 <\/span><\/p>\n

General & Administrative <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$114 <\/span><\/p>\n

Total <\/span><\/p>\n

$\/t Ni produced <\/span><\/p>\n

$1,598 <\/span><\/p>\n<\/div>\n<\/div>\n

Economic Analysis <\/p>\n

At an assumed nickel price of $8.50 <\/span> \/lb ( $18,738 <\/span> \/t) and a USD:CAD exchange rate of 0.74, the Refinery generates an after-tax NPV 8% of $445 million <\/span> , an after-tax IRR of 20%, and an after-tax payback of 4.0 years. Table 4 provides further details on study economics. <\/p>\n

Benchmark maintains a comprehensive database of nickel production statistics and forecasts long-term pricing premiums relative to the LME nickel price for battery-grade nickel sulphate.\u00a0 While the nickel sulphate market is currently small with inherent pricing volatility, even the most conservative of EV adoption rates will see a significant increase in nickel sulphate requirements. As the nickel sulphate market grows in coming years and preferred feedstocks are established, it is expected that a more consistent premium basis will be established based on typical upgrading costs. Benchmark\u2019s forecast nickel sulphate premium basis for the year 2030 is $1,575 <\/span> \/t nickel ( $0.71 <\/span> \/lb nickel), which has been applied in the economic analysis. This premium is based on Benchmark\u2019s \u2018base case\u2019 forecast of EV adoption and battery chemistry trends. <\/p>\n

The Study models taxes in accordance with provincial and federal legislation.\u00a0 The Study reflects the impact of the federal government\u2019s refundable critical minerals investment tax credit, announced in the 2023 Federal Budget, which is proposed to be equal to 30% of the capital cost of eligible property for the extraction and processing of certain critical minerals, including nickel.\u00a0 The Study estimates total LOM taxes paid of C$1,000 million <\/span> including C$520 million <\/span> to the Province of British Columbia <\/span> and C$480 million <\/span> to the Government of Canada <\/span> . <\/p>\n

Table 4 \u2013 Study Economics <\/p>\n

\n
\n

Economic Basis\/Result <\/span><\/p>\n

Units <\/span><\/p>\n

Value <\/span><\/p>\n

Payability, Awaruite Concentrate <\/span><\/p>\n

% of LME Ni <\/span><\/p>\n

92 <\/span><\/p>\n

Price <\/span><\/p>\n

Nickel <\/span><\/p>\n

$\/lb <\/span><\/p>\n

8.50 <\/span><\/p>\n

Cobalt <\/span><\/p>\n

$\/lb <\/span><\/p>\n

15.00 <\/span><\/p>\n

Copper <\/span><\/p>\n

$\/lb <\/span><\/p>\n

4.00 <\/span><\/p>\n

Ammonium Sulphate <\/span><\/p>\n

$\/t <\/span><\/p>\n

330 <\/span><\/p>\n

Payability <\/span><\/p>\n

Cobalt <\/span><\/p>\n

% <\/span><\/p>\n

85 <\/span><\/p>\n

Copper <\/span><\/p>\n

% <\/span><\/p>\n

95 <\/span><\/p>\n

After-Tax <\/span><\/p>\n

NPV 8% <\/span><\/p>\n

$, millions <\/span><\/p>\n

$445 <\/span><\/p>\n

IRR <\/span><\/p>\n

% <\/span><\/p>\n

20 <\/span><\/p>\n

Payback <\/span><\/p>\n

years <\/span><\/p>\n

4.0 <\/span><\/p>\n<\/div>\n<\/div>\n

Environmental Assessment and Permitting <\/p>\n

The Refinery has been assumed in the Study to be located in central B.C., with the selected location ultimately subject to community consultation, environmental characterization and baseline studies. The BC Environmental Assessment Act Reviewable Projects Regulation specifies that a new non-ferrous metal refinery would require assessment under the established provincial EA process. <\/p>\n

Study Report <\/p>\n

FPX intends to file the Study Report on the FPX website before the end of the first quarter of 2025. As this Study presents a separate midstream industrial project which does not impact in any way the Baptiste Nickel Project, or any of FPX\u2019s other projects, there is no mineral resource attributed to the Study.\u00a0 For readers to fully understand the information in this news release, they should read the Study Report in its entirety, including all qualifications, assumptions, exclusions, and risks that relate to the Study.\u00a0 The Study Report is intended to be read as a whole, and sections should not be read or relied upon out of context. <\/p>\n

Study Lead <\/p>\n

The Study has been prepared by Wood Canada Limited, who has reviewed and approved the technical and cost estimating content of this news release. <\/p>\n

Qualified Person <\/p>\n

Andrew Osterloh <\/span> , P.Eng., FPX\u2019s Senior Vice President, Projects and Operations, has reviewed and approved the content of this news release. <\/p>\n

About FPX Nickel Corp. <\/p>\n

FPX Nickel Corp.\u00a0 is focused on the exploration and development of the Baptiste Nickel Project, located in central British Columbia <\/span> , and other occurrences of the same unique style of naturally occurring nickel-iron mineralization known as awaruite.\u00a0 For more information, please view the Company\u2019s website at https:\/\/fpxnickel.com\/ <\/p>\n

On behalf of FPX Nickel Corp. <\/p>\n

\u2018Martin\u00a0Turenne\u2019
Martin Turenne <\/span> , President, CEO and Director <\/p>\n

Forward-Looking Statements <\/p>\n

Certain of the statements made and information contained herein is considered \u2018forward-looking information\u2019 within the meaning of applicable Canadian securities laws, including those which relate to the proposed development of the Refinery, the intended processing of commercially available awaruite concentrate at the Refinery and the ability to obtain same; the projected economics of the Refinery, including capital cost; operating costs; NPV; IRR; carbon intensity; processing life; growth of the EV market; marketability of the concentrate; growth of demand for nickel sulphate and pricing therefor; and all other statements, other than statements of historical facts. These statements address future events and conditions and actual results could differ from those currently projected.\u00a0 The Company does not assume the obligation to update any forward-looking statement. <\/p>\n

Generally, forward-looking statements can be identified by the use of terminology such as \u2018plans\u2019, \u2018expects\u2019, \u2018estimates\u2019, \u2018intends\u2019, \u2018anticipates\u2019, \u2018believes\u2019 or variations of such words, or statements that certain actions, events or results \u2018may\u2019, \u2018could\u2019, \u2018would\u2019, \u2018might\u2019, \u2018occur\u2019 or \u2018be achieved\u2019. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the public reports and filings for FPX, filed on SEDAR+ at www.sedarplus.com . Although FPX believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, FPX disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. <\/p>\n

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. <\/p>\n

\n<\/div>\n

SOURCE FPX Nickel Corp. <\/p>\n<\/p>\n

View original content to download multimedia: http:\/\/www.newswire.ca\/en\/releases\/archive\/February2025\/24\/c4996.html <\/p>\n<\/div>\n<\/div>\n

News Provided by Canada Newswire via QuoteMedia<\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a0FPX Nickel Corp. (TSXV: FPX) (OTCQB: FPOCF) (\u2018 FPX \u2018 or the \u2018 Company \u2018) is pleased to announce results from an Awaruite Refinery Scoping Study (the \u2018 Study \u2018) which demonstrates a compelling business case for the development of a standalone refinery (the \u2018 Refinery \u2018) to refine awaruite concentrate into battery-grade nickel sulphate […]<\/p>\n","protected":false},"author":0,"featured_media":15292,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-15291","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=15291"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15291\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/15292"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=15291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=15291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=15291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}