A $75 million spend will see Japanese mining giant Idemitsu Australia become a majority stakeholder in Queensland’s $798 million Vecco critical minerals project.
Idemitsu has increased its holding in Vecco Group from a humble 14.6 per cent to 51 per cent in a bid to increase its critical minerals investment.
The Vecco project will see high purity vanadium mined from Queensland’s Julia Creek region and delivered to the critical mineral hopeful’s integrated vanadium electrolyte manufacturing facility in Townsville until a local facility can be built.
Construction of the mine, which was recently declared a coordinated project by the Queensland Coordinator-General, is expected to commence in 2026, with production kicking off a year later, generating an anticipated 600 jobs for north-west Queensland locals.
Idemitsu Australia chief executive officer Steve Kovac said the move is part of the company’s plan to prioritise renewable energy storage and sustainability through critical minerals projects.
“We are delighted to extend our strategic partnership with Vecco Group and support a significant project that has potential to deliver large scale, long duration energy storage solutions, while creating new jobs and industries here in Queensland,” Kovac said.
“Fundamental to the energy transition and one of the most strategically important critical minerals due to its applications in energy storage, steelmaking, and clean energy technologies, vanadium will catalyse the world’s development of sustainable energy technologies.
“The growing demand for vanadium flow batteries highlights its importance in enabling long duration, large-scale energy storage and advancing lightweight, high-strength materials that drive the technologies of the future.”
Vecco Group managing director Thomas Northcott welcomed Idemitsu’s investment and said ever-growing global demand for vanadium flow batteries was good news for Queensland’s burgeoning critical minerals mining and battery industry.
“We are proud to deliver Vecco’s critical minerals project and commercial-scale vanadium electrolyte manufacturing plant, establishing an end-to-end vanadium battery supply chain from mining to energy storage,” Northcott said.
“With the support of our partners, Vecco is uniquely positioned to integrate mining and manufacturing, leveraging our expertise in critical minerals to strengthen the downstream supply chain in Queensland.”
The Vecco project is expected to extract up to 6.7 million tonnes per annum (Mtpa) of run-of-mine ore to produce up to 8700tpa of vanadium, 4000tpa of high purity alumina and 600tpa of molybdenum over a 28-year mine life.
A comprehensive environmental impact statement is underway to assess the project’s impact on local communities in the region.
Idemitsu is a diversified multinational with annual revenues of $70 billion and diverse interests across renewable energy, resources, advanced materials, lubricants, retail fuel and agriculture around the world.
The company has set ambitious climate targets which include reducing carbon emissions by 7.3 million tons (46 per cent) from 2013 to 2030 on a pathway to reaching carbon neutrality by 2050.
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