Austral Resources Australia (ASX:AR1) has secured a further $15 million from the QIC Queensland Critical Minerals Fund (QCMF) to support expansion studies at its Rocklands processing facility in North West Queensland.
The non-dilutive investment will fund a Stage 2 Scoping Study assessing an increase in Rocklands’ processing capacity from 3 million tonnes per annum (Mtpa) to between 4.5Mtpa and 6Mtpa.
Austral will also examine alternative power solutions and associated infrastructure as it considers developing Rocklands into a regional copper processing hub capable of accepting third-party ore.
The plans come as Austral pursues regional consolidation through its $80.7 million proposal to acquire Hammer Metals (ASX:HMX), which holds the Kalman Project and other exploration assets in the Mount Isa region.
Chairman David Newling says QIC’s follow-on investment reflects the relationship established during Austral’s operational transformation.
“QIC has been a valued partner throughout our transformation, and this follow-on investment reflects the confidence that has developed through that relationship,” Newling says.
“The expansion of Rocklands is just as much about supporting Austral’s regional consolidation strategy as it is about creating new opportunities for copper development across the North West Minerals Province.”
The investment is structured as a royalty financing arrangement. Austral will pay QCMF a 0.8% royalty on gross revenue from the first 200,000 tonnes of contained copper produced through Rocklands, followed by 0.3% on the subsequent 200,000 tonnes. The royalty will then cease.
Austral notes it must reach a commercial-scale production rate equivalent to 20,000 tonnes of contained copper and make its first royalty payment by 31 December 2028. Missing the deadline would add 0.25 percentage points to the initial royalty rate.
QCMF Fund Manager Joshua Risson says Rocklands could address a shortage of processing infrastructure in the region.
“Rocklands has the potential to become critical regional infrastructure, providing much-needed processing capacity that can unlock stranded copper resources across the North West while supporting Austral’s own long-term growth,” Risson says.
Austral says recent mine planning indicates the existing 3Mtpa facility will be fully utilised processing sulphide ore from its Western and Eastern Operations until at least 2034.
Engineering and procurement for the Rocklands restart remain under way, with first production targeted for the September 2027 quarter.
Write to France Pinzon at Mining.com.au
Images: Austral Resources
