Blackstone Minerals Teams Up with INN

Investor Insights

Blackstone Minerals is strategically positioned to capitalize on an anticipated nickel supply shortage as it aims to establish itself as a fully integrated producer of cost-effective, low-carbon, battery-grade nickel. Central to this strategy is Blackstone’s Ta Khoa project in Vietnam, poised to become a prominent player in the electric vehicle market.

Overview

With the global shift towards a sustainable net-zero future, the demand for battery metals is escalating, and nickel is on track to face a supply crunch. While traditionally used in stainless steel, nickel is now a critical component in lithium-ion batteries.

As countries aim to replace fossil fuel vehicles with electric cars by 2030, there is a surge in demand for this metal. Benchmark Minerals projects a nearly 950% increase in demand for battery-grade nickel by 2040.

Increasing global nickel production is crucial, with a focus on reducing carbon emissions across the supply chain. Blackstone Minerals (ASX:BSX, OTC:BLSTF, FRA:B9S) recognizes the importance of sustainability and aims to be a leading provider of low-carbon nickel sulphide. The Ta Khoa project in Vietnam exemplifies this commitment.

Blackstone Minerals business structure schematic

With over 20 operational mines and a growing technology sector, Vietnam is emerging as a key center for electric vehicle manufacturing and innovation, driven by low labor costs and regulated electricity prices. The region’s increasing foreign direct investment, aiming for $50 billion by 2030, reflects this trend.

Blackstone is well-positioned to benefit from these developments, particularly due to the Inflation Reduction Act signed by US President Joe Biden in August 2022, marking a significant investment in climate action. A similar initiative in the European Union, which has a Free Trade Agreement with Vietnam, has attracted interest from Blackstone’s partners.

The Ta Khoa Project of Blackstone comprises the Ta Khoa Nickel Mine and the Ta Khoa Refinery, with recent milestones highlighting the company’s dedication to advancing this transformative project.

Recent developments at the Ta Khoa Project include a memorandum of understanding with Cavico Laos Mining for collaboration on various aspects of the nickel mine in Lao People’s Democratic Republic. Blackstone also partnered with Arca Climate Technologies to explore carbon capture opportunities at the project and signed a direct power purchase agreement with Limes Renewables Energy.

The company received AU$2.8 million as an advance from a research & development lending fund, entered an option agreement with CaNickel Mining to acquire the Wabowden nickel project in Canada, and has advanced its byproduct offtake strategy with various companies.

The Wabowden project is expected to supply the Ta Khoa Refinery, reducing reliance on external feed sources. Collaborations with DRET, VinaChem, and other companies aim to repurpose waste materials and establish renewable energy supply for the project.

Further agreements with Yulho Co. Ltd and EN Plus Co. Ltd demonstrate Blackstone’s efforts to strengthen its nickel business globally, leveraging partnerships in various projects across regions.

Company Highlights

• The global nickel market is facing a structural deficit, with demand set to increase by 950% by 2040.
• Blackstone Minerals is poised to address this shortfall as a producer of low-cost, low-carbon nickel.
• The Ta Khoa project in Vietnam, surrounded by ample nickel reserves, positions Blackstone as a key player in the electric vehicle market.
• Vietnam’s attractiveness for investment is evident from the substantial rise in foreign direct investments over the years.
• Infrastructure advantages, skilled labor force, and government support further enhance the Ta Khoa project’s potential.
• Blackstone’s pre-feasibility study confirms a viable refining process to produce battery-grade nickel.
• Key feedstocks for the Ta Khoa Refinery Pilot program indicate progress in refining operations.

Blackstone holds a majority interest in the Ta Khoa Nickel-Copper-PGE Project in Vietnam, which includes a contemporary nickel mine meeting Australian Standards. The established Ban Phuc nickel mine operated successfully from 2013 to 2016.

Plans for a concentrator, refinery, and precursor facility at Ta Khoa support the integrated production of nickel, cobalt, and manganese precursor products for the Asia-Pacific market. Key R&D aims include developing a successful production flowsheet.

Blackstone’s collaboration model focuses on sustainable mining practices, reducing carbon footprint, and maintaining a vertically integrated supply chain.

Project Highlights:

• Multiple Deposits: Ta Khoa boasts significant deposits like King Snake and Sui Phong, offering high-grade nickel and PGE content. The Ban Phuc mine, alongside unexplored targets, add to its potential.
• Experienced Team: Blackstone’s owners bring decades of expertise in nickel mining and refining.
• Abundant Reserves: Ta Khoa contains substantial probable reserves and mining inventory of nickel, supporting long-term production.
• Longevity: The mine foresees stable annual nickel concentrate production, with refinery capabilities to extend the project’s life.
• Established Operation: Existing infrastructure and community support enhance the project’s sustainability and productivity.
• Feed Flexibility: The refinery offers diverse feed options, ensuring operational security and risk management.
• Strategic Partnerships: Collaborations with industry leaders add value to the project’s development.
• Financial Viability: Ta Khoa shows promising financial returns, backed by robust pre-feasibility studies.
• Sustainability Focus: Independent assessments affirm Ta Khoa’s position as a low-emission and environmentally responsible project.
• Successful Pilots: Recent refining trials demonstrate the production of battery-grade nickel sulphate, hinting at future success.
• Future Roadmap: Definitive feasibility studies and supply chain integration are the next steps for Blackstone towards finalizing refining partnerships.

Management Team

Hamish Halliday – Non-executive Chairman

Hamish Halliday, a seasoned geologist, brings over two decades of corporate and technical experience to the table. As the founder of Adamus Resources Limited, he led the company from a multimillion-dollar float to a significant gold producer.

Scott Williamson – Managing Director

With a mining engineering background and extensive experience in both technical and corporate roles, Scott Williamson plays a vital role in Blackstone’s leadership team.

Dr. Frank Bierlein – Non-executive Director

Dr. Frank Bierlein, a geologist with three decades of technical and corporate expertise, adds valuable insight to the board, particularly in mineral exploration and project management.