Vecco's Critical Mineral Projects Move Forward with $798 Million Investment

The Honourable Grace Grace, Minister for State Development and Infrastructure, Minister for Industrial Relations, and Minister for Racing, has announced a significant milestone for Queensland's renewable energy sector. The Vecco Critical Minerals Project, valued at $798 million, is set to generate nearly 600 jobs in North West Queensland, with additional manufacturing opportunities in Townsville. Designated as a 'coordinated project' by the Queensland Coordinator-General, this declaration marks a crucial advancement towards securing environmental approvals necessary for the project's development. This initiative underscores Queensland's commitment to fostering sustainable growth, harnessing critical minerals, and bolstering economic prosperity through innovative renewable energy ventures.

Vecco's proposal for a new greenfield mine and critical minerals processing plant north of Julia Creek, coupled with plans for a battery manufacturing facility in Townsville, represents a significant advancement in Queensland's renewable energy landscape. The project has achieved coordinated project status, marking a pivotal step forward towards its realization. This initiative not only aims to bolster Queensland's energy grid with renewable resources but also promises to stimulate local manufacturing by creating new job opportunities. By integrating critical minerals processing and renewable energy infrastructure, Vecco is poised to contribute to the state's sustainable development goals while enhancing regional economic growth and resilience.

The "coordinated project" declaration by Queensland's Coordinator-General for the Vecco Critical Minerals Project marks a significant milestone, facilitating the path for various environmental approvals. Valued at $798 million, the proposed project includes plans for an open-cut mine located approximately 70km north of Julia Creek, alongside the establishment of a critical minerals processing plant. This facility aims to supply minerals essential for local manufacturing in Townsville, specifically for the production of rechargeable batteries designed for grid-scale energy applications. The initiative underscores Queensland's commitment to advancing sustainable energy solutions and fostering local economic growth through strategic investments in critical minerals and renewable technologies.

The Vecco Critical Minerals Project is projected to generate approximately 300 jobs during its construction phase and up to 274 jobs once the mine becomes operational. Pending necessary approvals, construction is slated to commence in 2025, with full operational activities expected to start by late 2026. The declaration of the project as a coordinated effort enables the Queensland Coordinator-General to streamline and expedite environmental approval processes from both the Queensland and Australian Governments. This regulatory support is pivotal in advancing the project's timeline and ensuring compliance with environmental standards while maximizing economic benefits and job creation in the region.

The Vecco Critical Minerals Project, situated near Julia Creek in North West Queensland, involves the development of a greenfield open-cut mine and processing plant aimed at extracting vanadium, high purity alumina (HPA), and molybdenum. These critical minerals are essential components in grid-scale energy storage, lithium-ion batteries, and electronic devices, highlighting their strategic importance in Queensland's economic future as outlined in the Queensland Critical Minerals Strategy.

Valued at $798 million, the project aims to extract up to 6.7 million tonnes per annum (Mtpa) of run-of-mine ore, resulting in an annual production capacity of approximately 8,000 tonnes of vanadium, 4,000 tonnes of high purity alumina, and 600 tonnes of molybdenum over a 17-year mine lifespan. Vecco plans to transport processed products onsite to its vanadium electrolyte manufacturing facility in Townsville, positioning itself for future establishment of a local vanadium battery manufacturing plant.

Minister for State Development and Infrastructure Grace Grace highlighted Queensland's leadership in renewable energy, attributing it to abundant natural resources and a skilled workforce. She emphasized an exciting proposal aimed at expanding the North West’s critical minerals industry and creating local manufacturing jobs, underscoring the state's potential to lead in developing, manufacturing, and deploying new energy storage technologies amidst a projected tenfold increase in battery storage demand by 2030. Grace emphasized Queensland's regional strengths in supporting the transition to high-value industries like battery development, positioning it strategically for economic growth and shaping the state's future.