Queensland Starts Construction of First Common User Facility for Critical Minerals Processing

Construction has started at Queensland's first Resources Common User Facility at the Cleveland Bay Industrial Park in Townsville, the state’s government said in a May 22 announcement.

Set to assist in the development, extraction and output of critical minerals, the facility will allow for the creation of mineral samples at scale, serving as a hub where production processes can be trialled for commercialisation.

It will be designed and delivered by Sedgman, a Queensland company and a member of the CIMIC Group.

The government plans to focus on vanadium first, referencing the mineral’s applications in renewable energy.

Vanadium projects are currently being developed in the Julia Creek and Richmond regions of Queensland. Examples include the Richmond-Julia Creek vanadium project, held by Richmond Vanadium Technology (ASX:RVT), and the similarly named Julia Creek vanadium project, which is owned by QEM (ASX:QEM).

Using the new facility, these companies and others will be able to pilot production processes, produce samples and assess potential by-products, waste streams and recyclable materials.

Research, staff training and validation of commerciality and technical viability are also planned for the facility, with the goal of helping mining companies secure financing, investor interest and offtake agreements and partnerships.

The government refers to the facility as a “key action” under its Resources Industry Development Plan, which aligns with the Queensland Critical Minerals Strategy. Under the development plan, the government has outlined global challenges and changes facing the resources industry, highlighting opportunities for industry growth and diversification, and the collaboration and commitments required in order to achieve the government's vision over a 30 year period.

Valued at AU$315 million, the Queensland Critical Minerals Strategy was established to responsibly use the state’s critical minerals. Its four general strategies are to move faster and smarter, maximise investment, build value chains, foster research and support excellence in the environmental, social and governance arena.

Recently, Queensland also established its first office in Shenzhen, China, strengthening its global trade presence.

Vanadium processing at the Resources Common User Facility is targeted in 2025.

Further expansion for other critical minerals such as cobalt and rare earths are expected.

The government added that the facility will also support the transformation of Queensland’s energy system to deliver clean, reliable and affordable energy to provide power for generations.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.