Gladstone signs MOU with Chinese conglomerate

Gladstone Pacific Nickel has executed a Memorandum of Understanding (MOU) for...

  Gladstone Pacific Nickel has executed a Memorandum of Understanding (MOU) for the development of its $3.65 billion Gladstone Nickel Project with one of China’s largest conglomerates. The MOU with China Metallurgical Construction (Group) Corporation (MCC) was signed by the Gladstone Chairman, Clive Palmer, and MCC President Mr. Shen Heting.Under the agreement, MCC will provide a commercial offer for construction and financing of the Gladstone Nickel Project, with the potential to establish an off-take agreement, while Gladstone will be responsible for operations of the project.MCC has confirmed it is prepared to provide a commercial offer for the construction of the entire Gladstone Nickel Project and will send its technical team to Australia to work with Gladstone to evaluate the full construction specification for the project within 60 days. MCC has further confirmed its intention to provide a turn-key Engineering, Procurement and Construction (EPC) offer for the construction of the Project.Gladstone said the MCC offer will be commercially competitive and provide guarantees for the construction price and EPC process. MCC has also offered to finance or assist in arranging finance sufficient to fund the project from Chinese banks. Gladstone has requested and MCC has agreed to consider coordination of the sale and off-take of nickel in China. Gladstone Managing Director, John Downie said: “I am particularly pleased with the strong commitment MCC has given to the project following the recent announcement of the financial results of the project feasibility study.”The financial results of the feasibility study for Stage 1 of the Gladstone Nickel Project showed US$625m of profit after tax and interest in the first year of full production and a net present value of US$4,322m. “This agreement is another major step forward for our world-class nickel project in Gladstone,” Mr Downie said.