FPX Nickel Scoping Study for North America’s Largest Nickel Sulphate Refinery Outlines Low-Cost and Low-Carbon Supply for the EV Battery Supply Chain
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FPX Nickel Scoping Study for North America’s Largest Nickel
Sulphate Refinery Outlines Low-Cost and Low-Carbon Supply for
the EV Battery Supply Chain
Vancouver, February 24, 2025 – FPX Nickel Corp. ( TSX-V: FPX, OTCQB: FPOCF ) (“FPX” or the
“Company”) is pleased to announce results from an Awaruite Refinery Scoping Study (the “Study”) which
demonstrates a compelling business case for the development of a standalone refinery (the “Refinery”) to
refine awaruite concentrate into battery-grade nickel sulphate for the electric vehicle (“EV”) industry, along
with producing valuable cobalt, copper, and ammonium sulphate by-products.
The Study has been prepared by Wood Canada Limited and all amounts are in US Dollars unless otherwise
indicated. The Study relates to a standalone industrial project and anticipates the production of awaruite
ore from projects that are not limited to mineral projects of the Company; without limiting the foregoing,
the Study is separate and standalone from the Baptiste Nickel Project, which demonstrated the technical
and commercial advantage of mining and concentrating awaruite ore to a high-grade awaruite concentrate.
Highlights
• Strong Economics: After-tax NPV8% of $445 million and IRR of 20% at $8.50 /lb Ni
• Large-Scale, Long Life: 40-year operating life producing 32,000 tpa of nickel contained in
battery-grade nickel sulphate
• Valuable Products: Production of battery-grade nickel sulphate for the EV industry, and by-
products including cobalt, copper , and ammonium sulphate, a valuable fertilizer product for the
agricultural sector
• Low Cost: Total estimated operating costs of $1,598/t Ni, or $133/t Ni ($0.0 6 /lb Ni) on a by -
product basis for refining awaruite concentrate to batter y-grade nickel sulphate, resulting in total
all-in production costs of $8,290/t Ni ($3.76/lb Ni) for nickel sulphate generated from awaruite
mineralization (inclusive of mining, processing, refining, on a by-product basis), with both figures
ranking in the lowest decile of the respective global nickel sulphate cost curves
• Low Carbon: A carbon intensity of 0.2 tCO2/t Ni for refining operations, resulting in a total all-in
carbon intensity of 1.4 t CO2/t Ni for nickel sulphate generated from awaruite mineralization, which
is magnitudes lower than current nickel sulphate production routes
“This Study confirms the disruptive potential of awaruite concentrate as an ideal feedstock for the
production of battery-grade nickel sulphate for the automotive sector,” commented Martin Turenne, FPX
Nickel’s Chief Executive Officer and President. “The Study reinforces the opportunity for the development
of an integrated , made-in-Canada solution from mine -to-battery, utilizing awaruite concentrate as a
lynchpin source of nickel, with conventional refining steps underpinning low-cost, low -carbon nickel
production for use in domestic and allied country EV battery supply chains.”
Figure 1 – Nickel Sulphate Refining Cost Curve
Figure 2 – Nickel Sulphate Refining Carbon Intensity by Source
Background
FPX commenced development of the Study in October 2024 to further demonstrate the economic and
strategic opportunity to refine awaruite concentrates to battery-grade nickel sulphate and other valuable by-
products. This Study incorporates the flowsheet advancements outlined in the Company’s previously
reported pilot-scale hydrometallurgical testwork results (see FPX news release dated October 15, 2024).
Scoping Study Overview
The mine-to-battery pathway for awaruite mineralization is presented in Figure 3. At a mine site, awaruite
mineralization could be subjected to a simple mineral processing flowsheet to produce a high-grade
awaruite concentrate, which could then be marketed either to the stainless steel or EV battery supply chains.
This Study envisions purchasing of such awaruite concentrate and refining to battery-grade nickel sulphate,
which would then be marketed to precursor cathode active material (“PCAM”) and cathode active material
(“CAM”) producers to further process the nickel sulphate into CAM, a direct input in EV battery cell
fabrication.
0
1
2
3
4
5
6
7
Awaruite Sulphide
(Concentrate)
Laterite
(NPI)
Laterite
(MHP)
Nickel Sulphate Carbon Intensity
(tCO2e/tNi)
Nickel Sulphate Refining Carbon Intensity by Source
1 FPX calculation, 2025
2 McKinsey & Company, 2024, "Toward Security in Sustainable Battery Raw Material Supply"
2 2 21
0.2
2.1
3.1
6.2
Figure 3 – Path of Awaruite Nickel Units from Mine to EV Battery
This Study outlines a mid -stream Refinery located in an industrial location in central British Columbia
which will be fed with awaruite concentrate and produce battery-grade nickel sulphate. The Study considers
a Refinery capable of producing 32,000 tonnes per year of contained nickel in battery-grade nickel sulphate.
In addition to nickel sulphate, the Refinery will produce three by-products, approximately as follows:
• 570 tonnes per year of contained cobalt in cobalt carbonate;
• 240 tonnes per year of contained copper in copper cement; and
• 87,400 tonnes per year of ammonium sulphate, a valuable fertilizer product.
The Refinery would process commercially available awaruite concentrate. Published metallurgical testwork
on awaruite (Ni 3Fe) nickel ores has shown that a relatively simple mineral processing flowsheet utilizing
magnetic separation followed by conventional froth flotation can produce a highly desirable awaruite
concentrate that presents flexibility for downstream consumption. Considering other awaruite nickel
projects in development by FPX and others, a refinery operation lifespan of 40 years is considered.
Study economics are presented in Table 1, demonstrating the Refinery has robust economics while
producing meaningful quantities of battery-grade nickel sulphate for the EV supply chain.
Table 1 – Awaruite Refinery Scoping Study Economics
Criteria Units Value
Initial Capital Cost $, millions $424
Operating Cost $/t Ni produced $1,598
Operating Cost, net of by-products $/t Ni produced $133
After-
Tax
NPV8% $, millions $445
IRR % 20
Payback Period Years 4.0
The Refinery’s operating costs excluding byproduct credits ($1,598 /t nickel contained) would fall within
the lowest decile of global production as per Benchmark Mineral Intelligence ’s (“Benchmark”) nickel
sulphate cost model, as presented in Figure 1. When byproduct credits are included, the Refinery would
have a lower production cost that any current global producer.
The Refinery will be supplied with low -carbon power from the BC Hydro grid, resulting in a carbon
intensity of 0.2 t CO2/tNi. As presented in Figure 2, this is magnitudes lower than current nickel sulphate
production routes.
According to Benchmark ’s database, t he 2024 annualized nickel sulphate production market size was
approximately 657,000 tonnes per year of contained nickel as of the fourth quarter of 2024, with production
heavily dominated by China at 76%, as presented in Figure 4. Additionally, less than 1% of current nickel
sulphate production is North America n (3,300 tonnes per year of contained nickel ). As such, the 32,000
tonnes per year of high -quality nickel sulphate produced by the Refinery in Canada would represent a n
approximate tenfold increase in current North American nickel sulphate production.
Figure 4 – Current Nickel Sulphate Production by Region
Metallurgy & Process Design
The metallurgical testwork program involved multiple bench- and a pilot-scale campaigns (see FPX news
release dated October 15, 2024 ). The latest testwork campaign involved continuous pilot-scale testing of
leaching unit operations and confirmed the leaching flowsheet. Nickel leach extractions greater than 99%
and production of low-impurity leach solution, suitable for downstream purification and crystallization ,
were simultaneously achieved during piloting. In addition, bench-scale testing of solution purification and
crystallization unit operations demonstrate d the ability to produce battery -grade nickel sulphate crystals
using the new ammonia -based flowsheet . Incorporating testwork results, the refining strategy takes
advantage of awaruite’s characteristics in a simple flowsheet utilizing well proven unit operations, as
presented in Figure 5.
Figure 5 – Awaruite Refinery Block Flow Diagram
Refinery Process Description
In the leaching area, awaruite concentrate is first subjected to an atmospheric leach, which serves the dual
purpose of 1) commencing awaruite dissolution, and 2) using awaruite as a reagent to neutralize free acid
and precipitate remaining iron, aluminum, and chromium from the pressure leach solution. Any unleached
awaruite is then further leached in a mild pressure oxidation circuit, where full awaruite dissolution is
achieved in tandem with initial iron precipitation. Pressure leach solution then reports to the atmospheric
leach circuit and pressure leach residue is dewatered for disposal. A slipstream of pressure leach solution
is processed in a copper removal circuit, where a copper cement grading approximately 70 to 80% copper
is produced.
The final leach solution, grading 100 g/l nickel, is first processed in a solvent extraction (“ SX”) circuit to
extract cobalt. Extracted cobalt is then precipitated from the cobalt -rich solution as a carbonate product
grading approximately 50% cobalt. While a cobalt carbonate product was selected for the Study, FPX
testwork has also demonstrated the ability to produce cobalt-rich mixed hydroxide precipitate (“MHP”).
Nickel is then extracted away from the cobalt depleted leach solution to produce a purified and concentrated
stream of nickel sulphate which is then crystallized into battery -grade nickel sulphate crystals suitable for
use in the EV supply chain.
The nickel depleted leach solution is then treated to sequentially removal trace levels of nickel and
magnesium. This purified stream is then crystallized into ammonium sulphate crystals, a widely used
industrial fertilizer. Miscellaneous minor process streams are also processed in the ammonium sulphate
crystallizer which enables the refinery to operate as a zero liquid discharge facility.
Capital Cost Estimate
Initial capital costs have been estimated in alignment with AACE (Association for the Advancement of
Cost Engineering) Class 5 standards, while sustaining and closure capital costs have been estimated on an
order-of-magnitude (“OOM”) basis. The total initial capital cost for the Project is estimated to be $424
million, with no expansion considered. Total sustaining capital cost is estimated to be $40 million and total
closure capital cost is estimated to be $ 42 million. No salvage value is considered due to the 40-year
operation life.
Table 2 – Total Estimated Capital Costs
Capital
Cost Type
Category Total
($, millions)
Notes
Initial
Capital
Costs
Refinery Process $152
Reagents $45
Utilities, Services, & Infrastructure $40
Total Direct Costs $237
Indirect Costs $81 34% of Direct Costs
Contingency $89 28% of Direct and Indirect Costs
Owners Costs $18
Total Initial Capital $424
Total Sustaining Capital Costs $40 Expended years 1-40
Total Closure Capital Costs $42 Expended years 41-42
Total Capital Costs $506
Operating Cost Estimate
Total operating costs are estimated to average $ 1,598 per tonne of nickel produced before by-product
credits, with a breakdown of these costs by cost centre presented in Table 3. The net operating cost inclusive
of by-product credits for cobalt, copper, and ammonium sulphate is $133/t Ni ($0.06 /lb Ni).
Table 3 –Estimated Operating Costs (excludes by-product credits)
Category Units Value
Reagents $/t Ni produced $757
Consumables $/t Ni produced $264
Labour $/t Ni produced $258
Maintenance $/t Ni produced $136
Power $/t Ni produced $69
General & Administrative $/t Ni produced $114
Total $/t Ni produced $1,598
Economic Analysis
At an assumed nickel price of $8.50/lb ($18,738/t) and a USD:CAD exchange rate of 0.7 4, the Refinery
generates an after-tax NPV8% of $445 million, an after-tax IRR of 20%, and an after -tax payback of 4.0
years. Table 4 provides further details on study economics.
Benchmark maintains a comprehensive database of nickel production statistics and forecasts long -term
pricing premiums relative to the LME nickel price for battery -grade nickel sulphate. While the nickel
sulphate market is currently small with inherent pri cing volatility, even the most conservative of EV
adoption rates will see a significant increase in nickel sulphate requirements. As the nickel sulphate market
grows in coming years and preferred feedstocks are established, it is expected that a more consi stent
premium basis will be established based on typical upgrading costs. Benchmark’s forecast nickel sulphate
premium basis for the year 2030 is $1,575/t nickel ($0.71/lb nickel), which has been applied in the economic
analysis. This premium is based on Benchmark’s “base case” forecast of EV adoption and battery chemistry
trends.
The Study models taxes in accordance with provincial and federal legislation. The Study reflects the impact
of the federal government’s refundable critical minerals investment tax credit , announced in the 2023
Federal Budget, which is proposed to be equal to 30% of the capital cost of eligible property for the
extraction and processing of certain critical minerals, including nickel. The Study estimates total LOM
taxes paid of C$1,000 million including C$520 million to the Province of British Columbia and C$480
million to the Government of Canada.
Table 4 – Study Economics
Economic Basis/Result Units Value
Payability, Awaruite Concentrate % of LME Ni 92
Price Nickel $/lb 8.50
Cobalt $/lb 15.00
Copper $/lb 4.00
Ammonium Sulphate $/t 330
Payability Cobalt % 85
Copper % 95
After-Tax NPV8% $, millions $445
IRR % 20
Payback years 4.0
Environmental Assessment and Permitting
The Refinery has been assumed in th e Study to be located in central B.C., with the selected location
ultimately subject to community consultation, environmental characterization and baseline studies. The BC