German commodities trading group HMS Bergbau is in offtake talks with Australian Mines for nickel, cobalt and scandium from the Sconi project in North Queensland.
Australian Mines said it had received a formal expression of interest from HMS, with the potential for an agreement underpinning long-term supply from Sconi to Germany and broader European markets.
HMS chief executive officer Dennis Schwindt said; “We are pleased to explore offtake arrangements with Australian Mines to secure critical mineral supply for Europe’s energy transition.”
Main image: Greenvale township
Australian Mines said the EOI — and the potential progression to a binding offtake agreement — represented an opportunity for the Sconi project to access funding under the German Government’s critical minerals strategy.
In its latest quarterly report, released in April, the company noted that it would be difficult to secure financing for a final investment decision for the development of the Sconi project under current nickel and cobalt prices.
It had previously flagged a $1.5 billion battery metals project at Sconi, 220km north-west of Townsville, including a 2Mtpa ore processing plant.
“This EOI represents an important early step toward securing a long-term partnership that could support not only offtake arrangements, but also broader funding opportunities — particularly through programs such as the German Federal Government Raw Materials Fund,” Australian Mines chief executive officer Andrew Nesbitt said.