Cloncurry acid plant proponent SMAC (Strategic:Minerals:Acid:Critical) Developments plans to list on the Toronto Stock Exchange in December to raise $1,300,000 to fund a final feasibility study.
The company says alternative sulphuric acid processing in North Queensland needs to be developed sooner rather than later.
Managing director Hamish Collins said their plan to develop a sulphur burner and acid plant facility in stage one and pyrite processing in stage two would back dependent industry for decades.
It comes as Industry Minister Tim Ayres announced a deal struck with Glencore over the future of the Mount Isa copper smelter, which is one of two still running in Australia.
The smelter processes concentrate to 99.7 per cent metal before being sent to Townsville for refining.
It’s the smelter’s role in manufacturing sulphuric acid that presents the greatest threat to local industry, according to Mr Collins.
Main image: example of a pyrite roasting plant – courtesy Outotec
He said SMAC was looking to build a plant which would produce sulphuric acid for the next 30 years in line with the projected life of Phosphate Hill mine.
“All the logistics are currently in place. We have a location in Cloncurry where we would produce up to 180,000 tons of sulphuric acid via burning of sulphur to make acid. Very conventional.
“Phase two is to actually source pyrite and with critical minerals in it like copper and cobalt, which we’ve identified in the area, and build a modern roaster, which will roast the pyrite ore, which is all locally sourced.
“The product output is sulphuric acid and critical minerals, being copper and cobalt – and lots of it. So the idea is to make up to 550 to 600,000 tonnes of sulphuric acid from the roasting of pyrite.”
Phosphate Hill uses up to 1.2Mt of sulphuric acid a year. Around 1Mt is sourced from the Dyno Nobel owned acid plant in Mount Isa. The remainder is brought in from Townsville based Sun Metals zinc refinery.
Initial costings were $70 million for stage one and $500 million stage two, Mr Collins said.
Glencore holds that the smelter is losing tens of millions of dollars a month in the face of state-sponsored competition, particularly from China.
The Swiss multinational shut its two copper mines earlier this year in the face of declining grades. It is expected today’s announcement will include a four-year funding deal for the smelter.