Australian Mines to export Ni, Co to South Korea

Sydney-listed metals developer Australian Mines is to export battery grade nickel and cobalt sulphate to South Korea from Australia this week as part of the build-up to a strategic offtake agreement.

The company will send 40kg of 99pc purity nickel sulphate and 4kg of 98pc purity cobalt sulphate to South Korean energy and chemical group SK Innovation. The South Korean firm has a seven-year offtake agreement partly aimed at making batteries for German carmaker Mercedes' hybrid and electric vehicles.

The samples will be delivered from Australian Mines' demonstration plant in Perth from ore sourced from its Sconi nickel-cobalt-scandium project in Queensland. They are the first Australian nickel and cobalt sulphates used in the battery manufacturing process without a need for refinement, the company said. Further samples will be delivered in October-November.

SK Innovation's seven-year offtake agreement is for up to 12,000 t/yr of cobalt sulphate and 60,000 t/yr of nickel sulphate once the Sconi project has been fully ramped up. A bankable feasibility study for Sconi is under way. There is an option for the offtake agreement to be extended by a further six years.

SK Innovation is building a plant in Hungary to supply batteries to Europe's electric vehicle and energy storage markets. Australian Mines' demonstration plant, located at processing firm Simulus Group's Perth site, has attracted interest from other battery material project developers seeking an autoclave circuit, indicating growing demand in the battery sector.