Sunrise a 'mine of the future' as Clean TeQ reaches planning milestone

The PEP is the culmination of more than 12 months' work by a dedicated and highly skilled project-delivery and engineering team in partnership with Fluor Australia.

It updates the project's 2018 Definitive Feasibility Study and includes revised cost estimates, design and engineering work completed to date, as well as a revised master schedule for the engineering, procurement, construction, commissioning and ramp-up of the project.

The PEP modelled the first 25 years of production, with sufficient ore reserves to extend operations up to about 50 years.

It's a positive step forward for the company who announced its presence in the region in early 2018.

Clean TeQ co-chairman Robert Friedland said the PEP outcomes confirm Sunrise's status as one of the world's lowest cost, development-ready sources of critical battery raw materials.

"We have a clear vision for how to create a sustainable auto supply chain of the future," Mr Friedland said in last week's announcement.

"In production [Sunrise] will be a major supplier of nickel and cobalt to the lithium-ion battery market, and scandium to the aerospace, consumer electronics and automotive sectors.

"For the automotive sector, the Sunrise refinery is designed to produce enough high quality nickel to support the production of up to approximately one million electric vehicles per annum, with cobalt production sufficient to support up to two million electric vehicles per annum."

Among the announcement highlights, the PEP scope of works included a range of studies which have optimised metal production rates while holding autoclave ore feed constant at the approved maximum 2.5 million tonnes per annum.

The project is forecast to deliver more than $22.2 billion in revenue and an average annual post-tax free cash flow of more than $428 million over the first 25 years of operations.

The scandium oxide refining capacity of up to 20 tonnes per year is planned to be installed from year three, which can be expanded to 80 tonnes per year, with an approximate $25 million capital expenditure on additional refining capacity.

Pre-production costs of the project are estimated at $2.368 billion.

Mr Friedland couldn't anticipate how long it will take to have the project funded and in development, which is expected to bring a big economic and jobs boost to Parkes and its neighbours.

"But we can be patient with such a strategically important asset, and we are fully committed to ensuring it is developed with partners who understand the value that responsible supply chain integration brings," he said.

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Despite significant economic uncertainty created by COVID-19, global sales of electric vehicles surged in June and July this year and demand for battery materials is expected to rebound strongly in 2021.

Sunrise is set to deliver significant economic and social benefits to a range of stakeholders over many decades, including safe and well-paid employment, infrastructure upgrades, royalties, taxes and local community contributions of an estimated $17 million.

It's still forecast its construction workforce will peak at about 1700 full-time jobs during a three-year period and its operations workforce at 377 people - but that's not including maintenance support, and mining and drilling contractors.

Clean TeQ also continues to aim for the majority of these workers to reside in local communities.

Although the level of activity associated with the PEP will now reduce, Mr Friedland said a number of other "work streams" will continue.

These include progressing work on the long-lead electrical transmission line from Parkes to the site, continuing discussions with key stakeholders regarding land access for key project infrastructure, and continued exploration in the region, both within the main project mining lease and on exploration leases held by the company.

There is also ongoing collection of environmental monitoring data and regulatory compliance reporting, and the continuation of the Sunrise Community Consultative Committee to keep the community informed of the project's activities.

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