TMC - TMC and PAMCO Sign Binding MOU to Complete Feasibility Study to Process Polymetallic Nodules into Battery Metal Feedstocks | Benzinga
- Following successful completion of the pre-feasibility exercise, TMC and PAMCO have entered into a binding memorandum of understanding (MOU) where PAMCO will complete a feasibility study to process 1.3 million tonnes of wet polymetallic nodules (PMN) per year to produce lithium-ion battery and steel making feedstocks as part of the NORI-D Project Zero development
- This MoU is a key element of TMC's stated capital-light strategy to get into commercial production with low upfront capital costs by leveraging existing production assets which require minimal modification
- PAMCO will undertake a pilot demonstration on a 2,000-tonne PMN sample to confirm the commercial operating parameters and to further de-risk the PAMCO Hachinohe facility to process PMN into nickel-copper-cobalt alloy and manganese silicate
- PAMCO is expected to engineer additional equipment to convert nickel-copper-cobalt alloy into a higher value matte product
- The parties are working towards finalizing definitive processing agreements in Q3 2024
NEW YORK, Nov. 13, 2023 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (NASDAQ:TMC) ("TMC" or the "Company"), an explorer of the world's largest estimated undeveloped source of critical battery metals, today announced that it has signed a binding MOU with Pacific Metals Co Ltd (PAMCO) of Japan, where PAMCO will complete a feasibility study to toll treat 1.3 million tonnes of wet polymetallic nodules per year at its Hachinohe smelting facility expected to start in Q1 2026, consistent with the commencement of NORI's planned first commercial production from the NORI-D Polymetallic Nodule Project at the end of 2025.
The toll treatment is expected to take place on a dedicated rotary kiln-electric arc furnace (RKEF) processing line and produce two products: nickel-copper-cobalt alloy — an intermediate product used as feedstock to produce Li-ion battery cathodes — and a manganese silicate product used to make silico-manganese alloy, a critical input into steel manufacturing. PAMCO's Hachinohe facility is located on the coast in northern Japan and is equipped with port and processing infrastructure required to receive and process polymetallic nodules and to ship products to customers.
PAMCO successfully completed a pre-feasibility exercise pursuant to a non-binding MoU signed by the parties in November 2022. Under the new binding MoU:
- PAMCO, with TMC support, expects to complete the feasibility study by Q3, 2024.
- TMC provides PAMCO with the exclusive right to the first 1.3Mtpa of the expected 3Mtpa of wet nodule collection capacity of the company's first nodule collection system until completion of the feasibility study.
- The parties will enter into good faith negotiations to finalize definitive processing agreements on completion of the feasibility study.
The feasibility study is expected to confirm operating parameters and product specifications for PAMCO's dedicated production line and define the scope and execution plan for any additional equipment requirements, which are currently expected to be minor. An extended pilot demonstration program utilizing existing kilns and furnaces at PAMCO's Hachinohe facility is expected to treat a 2,000 tonne sample of polymetallic nodules collected during the successful pilot nodule collector test completed by Allseas in November 2022 on the NORI-D area, with the ...