Austral Resources Australia Receives QIC Royalty Financing to Plan Rocklands Expansion

Austral Resources Australia (ASX: AR1) has secured a $15 million investment from the QIC Queensland Critical Minerals Fund (QCMF) to fund Stage 2 expansion planning and alternative power studies at its Rocklands processing facility in north-west Queensland.

The non-dilutive royalty financing will initially support a scoping study examining an increase in processing capacity from 3.0 million tonnes per annum to between 4.5Mtpa and 6.0Mtpa, with the upper end intended to preserve future optionality.

Recent mine planning indicates the existing 3.0Mtpa plant will be fully utilised by Austral’s own sulphide ore through to at least 2034, providing the production base for evaluating additional capacity.

The studies form part of Austral’s longer-term plan to position Rocklands as a regional copper processing hub while restart work continues in parallel.

Greater Throughput Targeted

Recent optimisation work using prevailing copper prices and cost assumptions has confirmed the expected internal feed profile from Austral’s Western and Eastern operations, drawing on resource estimates that were recently re-optimised for the stronger price environment.

With existing capacity committed to internal ore, the Stage 2 study will assess higher throughput, operating efficiency, and associated infrastructure needs including alternative power options.

Additional capacity may also support Austral’s future production profile and potential third-party toll treatment opportunities across the region.

“Securing the support of the QIC Queensland Critical Minerals Fund is a significant milestone for Austral and a strong endorsement of both the Rocklands processing facility and our long-term strategy,” chair David Newling said.

“North-west Queensland is one of Australia's premier copper provinces, and we believe Rocklands is uniquely positioned to play an increasingly important role in its future—this investment gives us the opportunity to plan for that future while continuing to deliver value for our shareholders.”

Royalty Structure Preserves Equity

Austral will pay QCMF a 0.80% royalty on gross revenue for each quarter until the first 200,000t of contained copper have been produced through Rocklands, with the rate then falling to 0.30% until the next 200,000t are produced before ceasing.

Gross revenue is generally calculated from revenue paid by buyers for each tonne of copper produced at Rocklands, regardless of whether the feed is sourced internally or externally.

Austral must establish commercial-scale production, defined as a run rate equivalent to 20,000t of contained copper production, and make its first royalty payment by 31 December 2028.

If that deadline is missed, an additional 0.25% will apply to the initial 0.80% royalty until the quarter in which the first 200,000t threshold is reached.

QCMF will receive security over relevant project tenements alongside customary guarantees from Austral.

Restart Timetable on Schedule

Engineering and procurement work for the Rocklands restart remains on schedule, with first production still targeted for the third quarter of 2027.

“Our immediate focus remains the successful restart of Rocklands, but this investment also allows us to look beyond restart and plan for the next phase of the operation,” Mr Newling said.

“The studies will help us better understand how Rocklands can continue to evolve as a strategic processing asset while supporting the long-term growth of our business.”

“Rocklands has the potential to become critical regional infrastructure, providing much-needed processing capacity that can unlock stranded copper resources across the north-west while supporting Austral's own long-term growth,” QCMF fund manager Joshua Risson added.