05 Nov 2021

Life Cycle Analysis Confirms TECH Project is Carbon Negative

Clean and Green Nickel – Updated Life Cycle Assessment confirms TECH Project is Carbon Negative Highlights ? IS O - compliant Life Cycle Assessment undertaken by Minviro highlights QPM's TECH Project as not only net ze ro ca rbon - but significantly net Carbon Negative ? Based on planned waste gas sourcing strategy, production from the TECH project will far exceed the best e nvironme nta l a lte rna tive for a ny nic ke l p rod uc tion g lob a lly. ? For every tonne of nickel in nickel sulfate produced, the TECH Project REDUCES greenhouse gas emissions by 14.9 kg CO 2 e q . /kg nic ke l in nic ke l s ulfa te . ? Annua l re duc tion in Austr alia's greenhouse gas emissions as a result of the TECH Project is estimated at 238,000 tonnes CO 2 - equivalent, the equivalent of ~52,000 typical passenger vehicles . ? TECH Proje c t will utilis e wa s te mine g a s from the Bowe n Ba s in whic h would b e either flared or d ire c tly e mitte d to the atmosphere as a fugitive emission of methane which has a Global Warming Potential factor of 25 times tha t of CO 2 . ? Dua l be ne fits of ca pturing a nd cons uming ga s tha t would othe rwise contribute significa ntly to Globa l Wa rming a nd m a nufa cturing ba tte ry gra de mine ra ls to support the ongoing e le ctrifica tion of the a utomobile indus try . ? The TECH Project has now established itself as a leader in sustainable nickel production with net negative ca rbon nicke l produc tion combine d with minima l environme ntal footprint given no tailings dam or zero process liq uid s d is c ha rg e . Queensland Pacific Metals Ltd ( AS X:Q P M ) (“ QPM ” or “ the Compa ny ”) is ple a s e d to pub lis h the inte rim re p ort of an updated Life Cycle Assessment (“ LC A ”) re port for the TECH Proje ct s howing it to be the firs t e ve r truly ne t carbon neutral or net carbon negative battery grade nickel manufacturing plant. The report was undertaken by le a d ing ind us try life c yc le a na lys is s p e c ia lis ts , Minviro a nd inc orp ora te s QPM’s c urre ntly a ntic ip a ted energy strategy of sourcing gas from a combination of operating underground (80% of require ments) and open cut (20% of requirements) metallurgical coal mines. As part of the Definitive Feasibility Study for the TECH Project, QPM continues to work with its gas supply partners to finalise the long-term gas supply and transport agreements. The updated LCA report is a follow-on from the pre vious re port comple te d by Minviro in Ma rch 2021 (re fe r to ASX announcement 8 March 2021). The LCA report adopts a “crad le -to-gate” approach on the TECH Project and is fully compliant with the ISO Life Cycle Analysis Standard, meaning that the assessment of carbon emissions starts from the point of natural resource extraction to the end-gate. The TECH project LCA also inc ludes all greenhouse gas emissions associated with electricity, ore mining and transport to site, as well as the s up p ly a nd c ons ump tion of a ll re a g e nts a nd utilitie s for the s ite . Whis t the re will b e d ire c t CO 2 emissions and embodied CO 2 impa cts from the Project, this will be more than offset by the mitigated environmental impact from its gas sourcing strategy. ASX ANNOUNCEMENT 5 NOVEMBER 2021 P a g e | 2 The Minviro re p ort c omp le te d e a rlie r this ye a r hig hlig hte d the op p ortunity for QPM to utilis e g a s from e xis ting me ta llurg ic a l c oa l mine s to p os ition the TECH Project. QPM worked closely with gas supply partners to provide Minviro with detailed supply and operating data in order to prepare the updated LCA report in accordance with IS O s ta nd a rd IS O-14040/14044:2006. QPM is delighted with the outcome of the report which calculates that the TECH Project will not just be net zero carbon but will actually reduce Australia’s carbon emissions by 14.9 kg CO 2 equivalent for every kg of nickel in nickel sulfate. This compares with the industry average, as calcula te d by the Nicke l Ins titute , of 4.0 kg CO 2 / kg nic ke l s ulfa te . [1] Furthermore, if the nickel matte produced from carbon intensive processing methods becomes a feedstock for nickel sulfate, the industry average will only increase. Based on the outcomes of the LCA report, QPM believes that the TECH Project boasts by far the best ESG c re d e ntia ls in the world for a ll nic ke l p roje c ts – existing and planned. These credentials include: • Net negative carbon nickel production that will be achieved by repurposing a greenhouse -inte ns ive waste gas for commercial use, rather than buying ca rbon cre dits in the ope n ma rke t or a pplying intercompany carbon credits; • All e le c tric ity re q uire me nts will c ome from re ne wa b le s ourc e s ; • We s te rn world la b our s ta nd a rd s (a nd mining la ws for s us ta ina b le mining p ra c tic e ) with ore s up p ly c oming from Ne w Caledonia (French law and performance standards) and with the operation of the TECH Project being under Australian law; • Zero process liquids discharge; • Minimal environmental footprint with project residue representing about 20% of original ore mass and a pote ntia l to re duce this footprint to ze ro; a nd • "Ind us tria l e c olog y" - ma ximis ing the va lue of ore tha t is mine d - all major metals contained within the laterite ore will be extracted and refined into a commercial product rather than disposed as tailings. The Minviro interim study will now be subject to critical review from an independent third party, in accordance with the ISO sta nda rds. Bowen Basin Carbon Emissions The Bowen Basin contains some of the highest quality metallurgical (i.e. steel-making) coal mine s in the world . However, the region does produce significant greenhouse gas emissions associated with either flaring of drained mine ga s (from unde rground mine s) or through the highe r impa ct fugitive e missions of me tha ne (from ope n cut mine s), whic h is ~25 times worse than CO 2 from a global warming perspective. Advances in satellite analytics have allowed scientists to calculate methane emissions from operating coal mines. Leading analytics company Kayrros estimates that fugitive emissions from the Bowen Basin at an average of 1.6 million tonne s of me tha ne pe r a nnum. [2] There are currently limited customers for gas produced from the Bowen Basin. Pipeline infrastructure exists (North Que e nsla nd Ga s Pipe line which runs pa st the TECH proje ct) whic h conne cts the Bowe n Ba sin to Townsville. However, there are currently limited baseload customers and no export opportunity that would result in the commercial development of these gas resources. QPM estimates the TECH Project will require approximately 10-12PJ of gas per annum, making it a significant baseload user. Based on the supply strategy being discussed with its gas partners, the Company anticipates that approximately 20% of the gas for the TECH project would come from capturing fugitive emissions of me tha ne . Unde r the LCA ISO Sta nda rd, by using this ga s, QPM is re ducing the ca rbon e quiva le nt e missions of the Bowe n Basin by 700,000 tonnes pe r annum. P a g e | 3 QPM Managing Director Dr Stephen Grocott commented, “For 20 years I have been working on mineral projects that attempt to minimise greenhouse gas emissions. Never have I been able to work on one which can, not just reduce, but reverse emissions. Offtakers are demanding strong ESG credentials for battery metal production and QPM ticks all the boxes. The TECH Proje c t will b e a global leader in sustainability with net carbon negative nickel production, minimal waste and environmental footprint a nd de ve lope d world la bour la ws. Our goa l is to e nsure tha t whe n our custome rs a re buying our products, the y will know that they are the cleanest and most environmentally attractive in the world.” [1] Summary Life Cycle Assessment Report: Nickel Sulphate Hexahydrate. Reference Year 2017. Published March 2021. Sphe ra Solutions, Inc . [2] https ://www.ka yrros .c om/blog/me tha ne -e mis s ions -from-australias -bowe n-ba s in/ ABO UT MINVIRO Minviro (www.minviro.c om) is a London based and globally recognized consultancy and technology compa ny specialised in carrying out life cycle assessments in the technology metal space. The company provides quantitative environmental and climate impact data for mineral resource projects, battery manufacturers and OEMs to ma ke e nvironme nta lly informe d d e c is ions This a nnounce me nt ha s be e n authorise d for re le a se by the Board. ASX: QPM | ACN:125 368 658 For Furthe r Inf o : P: +61 7 3517 5900 | E: info@qpme ta ls.com.au | W: www.qpme tals.com.a u Conta ct: Dr Ste phe n Grocott, M D & CEO | Address: Level 17, 307 Que e ns St, Brisbane Q 4000 FORWARD LOOKING STATEMENT Statements & material contained in this ASX Release, particularly those regarding possible or a ssume d future pe rforma nce , production le ve ls or ra te s, commodity price s, re source s or pote ntia l growth of QPM, industry growth or othe r tre nd proje ctions a re , or may be, forward looking statements. Such statements relate to future events & expectations and, a s such, involve known a nd unknown risks & unce rta intie s . Although reasonable c a re ha s been ta ke n to e nsure fa cts sta te d in this Release are accurate and/or that the opinions expressed are fair & reasonable, no reliance can be placed for any purpose whatsoever on the informa tion conta ine d in this docume nt or on its comple te ne ss. Actua l re sults & de ve lopme nts ma y diffe r ma te ria lly from those expressed or implied by these forward-looking sta te me nts depe nding on a va rie ty of fa ctors . Nothing in this Re le a se should be construe d a s e ithe r a n offe r to se ll or a solicita tion of a n offe r to buy or se ll sha re s in a ny jurisdiction.
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