Blackstone Minerals | INN

Investor Insights

Blackstone Minerals is well-positioned to leverage a projected nickel provide deficit because it strives to change into a vertically built-in producer of low-cost, low-carbon, battery-grade nickel. Key to that is Blackstone’s Ta Khoa venture in Vietnam, an rising hub for the electrical automobile market.

Overview

Because the world strikes nearer to a sustainable net-zero future, the necessity for battery metals continues to mount and nickel might quickly be among the many metals to see a provide crunch. Although its roots are within the stainless-steel sector, it is also a important element of lithium-ion batteries.

On condition that many countries are aiming to exchange combustion automobiles with electrical automobiles by 2030, the steel is already experiencing a large spike in demand. Benchmark Minerals expects the necessity for battery-grade nickel will enhance about 950 p.c by 2040.

It is crucial to ramp up world nickel manufacturing however the useful resource sector, for its half, should accomplish that with a much-reduced carbon footprint to affect the sustainability of your entire worth chain. Blackstone Minerals (ASX:BSX,OTC:BLSTF,FRA:B9S) acknowledges this. As a vertically built-in producer of low-cost, low-carbon nickel, the corporate goals to change into a number one supply of low CO2 emission nickel sulphide. Its flagship Ta Khoa venture in Vietnam is consultant of that objective.

Blackstone Minerals enterprise construction schematic

With over 20 lively mines and a burgeoning expertise sector, Vietnam is on the street to turning into a hub of electrical automobile manufacturing and innovation, with low labor prices and controlled electrical energy pricing additional driving its development. Steadily growing overseas direct funding within the area is indicative of this because the nation seeks to draw $50 billion in new foreign investment by 2030.

Blackstone is uniquely positioned to make the most of this, thanks to 2 components. US President Joe Biden’s Inflation Discount Act, which got here into pressure in August 2022, represents the most important funding into local weather motion in United States historical past. An identical initiative is rolling out within the European Union (EU), which maintains a Free Commerce Settlement with Vietnam — one thing a number of companions of the corporate have expressed curiosity in.

Blackstone’s Ta Khoa Challenge consists of two streams, the Ta Khoa Nickel Mine and the Ta Khoa Refinery. Latest milestones level to Blackstone’s dedication to advancing this game-changing venture.

These milestones embody a memorandum of understanding with Cavico Laos Mining to collaborate in quite a few areas related to CLM’s nickel mine in Lao Folks’s Democratic Republic and provide of nickel merchandise for Blackstone’s Ta Khoa Refinery in Vietnam.

Blackstone additionally partnered with Arca Local weather Applied sciences to additional examine the carbon seize potential on the Ta Khoa Challenge by means of carbon mineralisation, and discover alternatives to utilise Arca’s carbon seize applied sciences throughout the venture.

In a bid to collaborate on the provision of renewable wind vitality to the Ta Khoa Challenge, Blackstone signed a direct energy buy settlement with Limes Renewables Power.

Blackstone acquired AU$2.8 million as an advance from a analysis & growth (R&D) lending fund backed by Uneven Innovation Finance and Fiftyone Capital. The superior cost displays the numerous funding by Blackstone to develop the Ta Khoa Refinery course of and Blackstone’s distinctive technique to convert nickel focus blends into battery merchandise within the type of precursor cathode lively materials (pCAM).

In December 2023, Blackstone entered into an possibility settlement with CaNickel Mining to amass the Wabowden nickel projectlocated within the world-class Thompson Nickel Belt in Manitoba, Canada.

The Wabowden venture could have the potential to fill the Ta Khoa Refinery, eradicating dependence on third social gathering feed sources.

The corporate has signed a non-binding MOU with the Improvement for Sources Environmental Know-how joint inventory firm (DRET) to analyze alternatives to repurpose and commerce waste materials (or residue) from the Ta Khoa Refinery into building materials merchandise. Furthermore, it has additionally progressed the Ta Khoa Refinery byproduct offtake technique with Vietnam Chemical Group (VinaChem), PV Chemical and Tools Company (PVChem) and Nam Phong Inexperienced Joint Inventory Firm (Nam Phong) to promote Ta Khoa Refinery byproducts, being manganese sulphate (or epsomite) and sodium sulphate.

As the corporate plans to construct a world nickel enterprise, Blackstone signed a non-binding memorandum of understanding with Yulho Co. Ltd (Yulho) and EN Plus Co. Ltd (EN Plus) to ascertain a collaboration throughout the companies together with EN Plus and Yulho who’re in three way partnership on the Ntaka Hill nickel sulphide venture in Tanzania, and the Dinagat Island nickel laterite venture within the Philippines.

Firm Highlights

• The worldwide nickel market is at present coming into a structural deficit, with demand anticipated to develop 950 p.c by 2040.
• Blackstone Minerals is well-positioned to handle this deficit as a vertically built-in producer of low-cost, low-carbon nickel.
• Blackstone’s flagship venture Ta Khoa is a brownfield venture located in Vietnam, one of many lowest capital price nations on this planet and an rising hub for the electrical automobile market with huge reserves of nickel.
• Vietnam is an more and more engaging area for funding with direct overseas investments that grew from $1.3 billion in 2000 to $15.6 billion in 2020.
• The Ta Khoa venture additionally has infrastructure benefits, through the present Ban Phuc mine, and processing amenities, entry to low-cost and underutilized hydroelectricity, a skilled labor pressure and help from the native authorities.
• Blackstone Minerals’ downstream pre-feasibility examine confirms a technically and economically sturdy hydrometallurgical refining course of to improve nickel sulphide focus to supply battery-grade nickel.
• Blackstone’s key nickel and cobalt feedstocks for the Ta Khoa Refinery Pilot program have been delivered to the metallurgical laboratory in Western Australia as of April 2022.

Blackstone holds a 90 p.c curiosity within the Ta Khoa Nickel-Copper-PGE Challenge, situated 160 kilometers west of Hanoi within the Son La Province of Vietnam. It consists of an present fashionable nickel mine constructed to Australian Requirements, which is at present underneath care and upkeep. The Ban Phuc nickel mine efficiently operated as a mechanized underground nickel mine from 2013 to 2016.

Blackstone intends to enhance the present mine by means of the set up of a big concentrator, refinery and precursor facility, supporting built-in on-site manufacturing of nickel, cobalt and manganese precursor merchandise for the Asia-Pacific market. Considered one of Blackstone’s key Analysis and Improvement goals with Ta Khoa is to develop a flowsheet that may help this manufacturing.

To meet this objective, Blackstone is specializing in a partnership mannequin, collaborating with teams dedicated to sustainable mining. It’s also working to attenuate its carbon footprint and implement a vertically built-in provide chain.

Challenge Highlights:

• A number of Huge Sulphide Deposits: The Ta Khoa venture options a number of extremely promising deposits together with King Snake (up to 4.3 percent nickel and 18.2 grams per ton (g/t) PGE), Sui Phong (2.95 meters @ 2.42 p.c nickel, 0.52 p.c copper, 0.06 p.c cobalt and 0.05 g/t PGE), and Ban Chang. The venture can be the location of the Ban Phuc nickel mine, which was operated from 2013 to 2016 by Asia Mineral Sources, together with a number of exploration targets which have but to be examined.
• Skilled Management: Internally, Blackstone’s house owners’ workforce brings over 50 years of expertise in management roles at main nickel mines and refineries globally. This expertise has been complemented by ALS Group, Wooden, Future Battery Industries CRC, Curtin College and the Electrical Mining Consortium.
• Giant Reserve and Mining Stock: The whole thing of Ta Khoa is estimated to include possible reserves of 48.7 Mt at 0.43 p.c nickel for 210 kilotons (kt) of nickel and a mining stock of 64.5 Mt at 0.41 p.c nickel for 265 kt nickel. This excludes Ban Khoa and different growing prospects.
• A Lengthy-lived Challenge: The Ta Khoa mine is anticipated to supply a yearly common of 18 kt of annual nickel focus over its ten-year lifespan. Blackstone believes the refinery can probably prolong its life previous ten years.
• An Established Mining Operation: Current infrastructure onsite features a 450 ktpa Mill and mining camp. The mine may even profit from a extremely supportive group and favorable authorities laws — Blackstone is dedicated to collaborating with group stakeholders within the venture’s growth.
• Feed Flexibility: Ta Khoa’s refinery will provide a number of feed choices, together with nickel focus, combined hydroxide precipitate, nickel matte and black mass. This flexibility drastically improves the safety and drastically reduces the danger of the venture general.
• Valued Partnerships: Blackstone is collaborating with multiple industry leaders and groups within the growth of Ta Khoa
• Compelling Pre-feasibility Research: The monetary outcomes of a base case pre-feasibility examine on the venture are promising. Based mostly on a conservative NCM811 precursor worth forecast, Ta Khoa shows an distinctive inner return price on capital invested.
• Built-in Vertical Technique: Blackstone is developing each the Ta Khoa mine and refinery towards a extremely supportive ESG, macroeconomic and financial backdrop. This together with Ta Khoa’s low capital depth provides the corporate a major benefit over rivals. Mentioned low depth is the results of a number of components, together with aggressive labor prices, favorable laws and low-cost renewable hydroelectric energy.
• A Chief in Low Emissions: Unbiased assessments from Digbee, Minviro and Circulor, alongside an audit from the Nickel Institute, have confirmed that Ta Khoa would be the lowest-emitting flowsheet within the business, at 9.8 kilograms of CO2 per kilogram of precursor with alternatives for even additional discount.
• Promising Pilots: With the help of ALS and course of engineering companion Wooden, Blackstone lately accomplished a 12-month programme of labor that developed a scaled model of its focus to sulphate flowsheet. The refinery, which processed greater than 9 tonnes of focus and MHP, efficiently achieved battery-grade nickel sulphate of 99.95 p.c, with a nickel restoration price of 97 p.c.
• Present Roadmap: Blackstone’s subsequent precedence is to finish a sequence of definitive feasibility research. As soon as these are full, it can deal with totally integrating the mine into the electrical automobile shopper provide chain and finalizing its refining partnership construction.

Administration Workforce

Hamish Halliday – Non-executive Chairman

Hamish Halliday is a geologist with over 20 years of company and technical expertise. He’s additionally the founding father of Adamus Sources Restricted, an AU$3 million float that grew to become a multimillion-ounce rising gold producer.

Scott Williamson – Managing Director

Scott Williamson is a mining engineer with a commerce diploma from the West Australian Faculty of Mines and Curtin College. He has over 10 years of expertise in technical and company roles within the mining and finance sectors.

Dr. Frank Bierlein – Non-executive Director

Dr. Frank Bierlein is a geologist with 30 years of technical and company expertise, specializing in grassroots to mine-stage mineral exploration, goal technology, venture administration and oversight, due diligence research, mineral prospectivity evaluation, metallogenic framework research and mineral assets market and funding evaluation.

Alison Gaines – Non-executive Director

Alison Gaines has over 20 years of expertise as a director in Australia and internationally. She has expertise within the roles of board chair and board committee chair, notably remuneration and nomination and governance committees. She can be the managing director of Gaines Advisory P/L and was lately world CEO of worldwide search and board consulting agency Gerard Daniels, with a major mining and vitality follow.

Gaines has a Bachelor of Legal guidelines and a Bachelor of Arts (hons) from the College of Western Australia, a Graduate Diploma in Authorized Observe from Australian Nationwide College and an honorary doctorate of the College and Grasp of Arts (Public Coverage) from Murdoch College. She is a fellow of the Australian Institute of Firm Administrators and holds the INSEAD certificates in company governance. She is at present the governor of the Faculty of Regulation Ltd, and non-executive director of Tura New Music.

Dan Lougher – Non-executive Director

Daniel Lougher’s profession spans greater than 40 years involving a spread of exploration, feasibility, growth, operations and company roles with Australian and worldwide mining corporations together with a interval of eighteen years spent in Africa with BHP Billiton, Impala Plats, Anglo American and Genmin. He was the managing director and chief govt officer of the profitable Australian nickel miner Western Areas Ltd till its takeover by Independence Group.

Lougher additionally holds a firstclass mine supervisor’s certificates of competency (WA) and is a fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Lougher is the chair of the corporate’s technical committee and nomination committee.

Jamie Byrde – CFO and Firm Secretary

Jamie Byrde has over 16 12 months’s expertise in company advisory, private and non-private firm administration since commencing his profession with large 4 and mid-tier chartered accounting companies positions. Byrde focuses on monetary administration, ASX and ASIC compliance and company governance of mineral and useful resource targeted public corporations. He’s additionally at present firm secretary for Enterprise Minerals Restricted.

Tessa Kutscher – Govt

Tessa Kutscher is an govt with greater than 20 years of expertise in working with C-Degree govt groups within the fields of enterprise technique, enterprise planning/optimisation and alter administration. After beginning her profession in Germany, she has labored internationally throughout completely different industries, equivalent to mining, finance, tourism and tertiary training.

Kutscher holds a grasp’s diploma in literature, linguistics and political science from the College of Bonn, Germany and a grasp’s diploma in educating from Ludwig Maximilian College of Munich.

Andrew Strickland – Govt

Andrew Strickland is an skilled examine and venture supervisor, a fellow of the Australian Institute of Mining and Metallurgy, College of WA MBA graduate, with undergraduate levels in chemical engineering and extractive metallurgy from Curtin and WASM.

Earlier than becoming a member of Blackstone, Strickland was a senior examine supervisor for GR Engineering Providers the place he was answerable for delivering a sequence of scoping, PFS and DFS research for each Australian and worldwide initiatives. Over his profession, he has held quite a lot of venture growth roles throughout each junior to mid-tier builders (together with Straits Sources, Perseus Mining and Tiger Sources) and main multi-operation producers (South32).

Graham Rigo – Govt

Graham Rigo is an skilled examine supervisor with over a decade of on-site manufacturing expertise, holding undergraduate levels in chemical engineering and finance from Curtin College, WA.

Earlier than becoming a member of Blackstone, Rigo was a examine supervisor for Ausenco the place he was answerable for delivering a sequence of scoping, PFS and DFS research for each Australian and worldwide initiatives over a spread of various commodities.

Rigo has over 11 years of website expertise in nickel and cobalt hydromet manufacturing expertise, in supervisory/superintendent stage roles in addition to course of engineer expertise.

Lon Taranaki – Govt

Lon Taranaki is a world mining skilled with over 25 years of intensive expertise in all elements of assets and mining, feasibility, growth and operations. Taranaki is a professional course of engineer from the College of Queensland Australia. He holds a Grasp of Enterprise Administration, and is a fellow of the Australian Institute of Firm Administrators. Taranaki has established his profession in Asia the place he has efficiently labored (and lived) throughout a number of jurisdictions and commodities starting from technical, mine administration and govt administration roles.

Previous to becoming a member of Blackstone in February 2022, Taranaki was the chief govt officer of Minegenco, a renewable-energy-focused impartial energy producer. Previous this, he was managing director of his personal consultancy, AMG Mining World, the place he was offering companies to the mining business in Singapore, Guyana, Indonesia and Cambodia. Moreover, Taranaki has held numerous senior positions with Sakari Sources, PTT Asia Pacific Mining, Straits Sources, Sedgmans and BHP Coal.