Exploration and development company FPX Nickel said on Monday that it would initiate a scoping study for a Canadian refinery with the capacity to produce 32 000 t/y of nickel in sulphate.

The scoping study would build on the results of a value engineering study for the Baptiste project and would incorporate the outcomes of an ongoing pilot-scale hydrometallurgical testwork programme, FPX said in a statement.

The scoping study is set for completion in the first quarter of 2025.

"Our refinery value engineering studies have substantially improved the business case and reduced the risk profile for a standalone refinery to convert awaruite concentrate into battery-grade nickel sulphate," commented senior VP of projects and operations Andrew Osterloh.

The Baptiste 2023 prefeasibility study demonstrates the potential to develop a high-margin and low-carbon nickel mine producing an average of 59 100 t/y of nickel over a 29-year mine life. Owing to awaruite's properties, Baptiste has the flexibility to produce a high-grade concentrate (60% nickel) for either direct feed into the stainless steel industry or for further refining into battery-grade nickel and cobalt products for the electric vehicle battery supply chain.

"Awaruite presents an unparalleled opportunity to significantly expand North America's battery material supply chain, all without the need to either displace or add smelting capacity. As we close out our value engineering for Baptiste, we are excited at the new value basis for our large-scale, long-life, high-margin, and low-carbon project," said Osterloh.

The refinery will be located in an urban setting in central British Columbia, benefitting from the infrastructure, services and labour which would be available at an integrated battery material processing hub.

Earlier this month, British Columbia selected the Baptiste project to be part of its newly established Critical Minerals Office (CMO) concierge service initiative.

The CMO will be a key entry point into the natural resource sector agencies and provide centralised support for the advancement of critical minerals projects such as Baptiste, and to leverage potential project funding opportunities from provincial and federal sources.