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Managing Contractor appointed for Townsville critical minerals facility

Written by Monica Gameng | Nov 17, 2023 1:00:00 AM

Townsville is a step closer to welcoming Australia’s first critical minerals processing facility for vanadium and other rare earths elements following the appointment of a Managing Contractor for the $75 million project. 

CIMIC Group company Sedgman has been awarded the contract to head the development of detailed design and construction program for the Queensland Resources Common User Facility (QRCUF). 

“We have been an innovation leader in minerals processing in the Queensland and Australian mining industry for 43 years. 

“We see the Queensland Government’s initiative to develop a critical minerals common user facility as a vital step in ensuring Queensland and Queensland companies stay at the forefront of the technology development essential to develop new resources driven industries required for our energy transition. 

“Minerals processing is at the heart of what we do, and we are pleased to bring our expertise to this unique project based in regional Queensland. 

“We will now begin to engage other Queensland companies to bring this state-of-the-art facility to life,” Sedgman Managing Director Grant Fraser said. 

With Queensland having some of the world’s richest critical mineral-producing areas – including the North West Minerals Province that was assessed to hold deposits worth $500 billion – the delivery of QRCUF will help accelerate the development of commercial mining projects in the State while promoting investment in advanced mineral manufacturing opportunities and supporting supply chain and industry development. 

The new facility will allow mining companies to trial mineral processing techniques as well as demonstrate project feasibility at scale and provide the market with product samples, ultimately fast track commercial development opportunities. 

The QRCUF is going to be built within the Cleveland Bay Industrial Park in Townsville. It will be a fully enclosed facility that will: 

  • Contain a base set of processing equipment, with a target nominal capacity of up to 1.5 tonnes of feed ore per hour 
  • Designed to accommodate trials of a range of critical minerals and rare earth elements, with the initial focus being vanadium 
  • Able to be adapted to accommodate different users’ processes 
  • Capable of future expansion 

“Queensland has some of the world’s richest mineral producing areas, with major deposits of copper, lead, zinc, nickel, cobalt, tungsten, graphite, vanadium and rare earths. 

“This supply, coupled with the global embrace of sustainability is driving interest in our state, and pushing clean energy transition forward. 

“North Queensland in particular is undergoing a great period of change and development, as we embrace the opportunities of the renewable energy transition. 

“Delivery of this Facility, as well as CopperString 2032 and other projects detailed in the Queensland Critical Minerals Strategy, will help accelerate resources opportunities to carry us into a new century,” Minister for Resources Scott Stewart said. 

Once up and running, the QRCUF will support the growth of the State’s emerging critical minerals sector and help create good jobs in North Queensland. 

When completed in 2025, the state-owned mineral processing facility will initially operate to process vanadium and will expand its scope over time to encompass processing other critical minerals such as cobalt and rare earth elements. 

“Queensland has a strong history as a mining state, and this Common User Facility will ensure we have a string mineral future as well. 

“This facility will prepare Queensland for the future of clean energy production through the critical minerals the world needs. 

“This facility will enable smaller mining companies to prove up their product and develop new opportunities for vanadium mining in Queensland. 

“The efficient production of vanadium, used in redox flow batteries could supercharge Queensland’s renewable energy industry. 

“As the only facility of its kind in the Asia-Pacific, the facility will also position Queensland at the forefront of innovation and commercialisation to drive advancements in manufacturing, defence, and scientific research,” Treasurer and Minister for Trade and Investment Cameron Dick said. 

Source: Queensland Government – Media Statements; Queensland Government – Department of Resources; QTenders