Environmental Approvals and Funding Milestones Boost QEM’s Julia Creek Prospects

Strategic Government Endorsements

QEM Limited (ASX: QEM) has achieved pivotal regulatory milestones for its flagship Julia Creek Vanadium and Energy Project (JCVEP) in northwest Queensland. The Queensland Office of the Coordinator General designated the project as a 'Coordinated Project' under the State Development and Public Works Organisation Act 1971, acknowledging its complexity and strategic importance. This status facilitates a streamlined Environmental Impact Statement (EIS) process through a bilateral agreement between Queensland and Commonwealth governments.

Complementing this, the Commonwealth Department of Climate Change, Energy, the Environment and Water (DCCEEW) declared the project a Controlled Action under the EPBC Act, confirming the need for environmental assessment but also enabling an integrated approval pathway. These dual declarations underscore strong government support and recognition of JCVEP’s potential social and economic benefits.

Capital Raise Fuels Development Momentum

In a constrained capital market, QEM successfully closed a renounceable rights issue in October 2024, raising $2.76 million before costs. The capital injection was bolstered by continued investment from the board and major shareholders, reflecting confidence in the project’s prospects. These funds are earmarked to accelerate pilot testing programs for both vanadium and oil components, as well as to advance pre-feasibility studies and environmental baseline work.

Advancing Technical and Environmental Studies

Technical collaboration remains a cornerstone of QEM’s development strategy. The University of Queensland’s Sustainable Minerals Institute is conducting beneficiation trials to separate hydrocarbons from vanadium-bearing clays, with results expected in early 2025. Concurrently, Core Resources Pty Ltd is focused on vanadium flotation studies aimed at optimizing ore processing, particularly targeting calcite removal. These studies will feed directly into the upcoming Pre-Feasibility Study, shaping the project’s operational blueprint.

Environmental stewardship is progressing in parallel. QEM has completed two years of baseline water monitoring and continues quarterly sampling to support the EIS. Additionally, geochemical and physical characterisation of mine waste is underway to inform rehabilitation planning, with a comprehensive report anticipated in Q1 2025.

Resource Scale and Infrastructure Advantage

The Julia Creek project boasts a globally significant JORC (2012) Mineral Resource of 2,870 million tonnes at 0.31% V2O5, including 461 million tonnes in the Indicated category. This positions JCVEP among the largest vanadium deposits listed on the ASX. The resource is complemented by a substantial contingent in-situ oil resource, with estimates ranging from 6.3 million barrels (1C) to 654 million barrels (3C) of oil equivalent.

Strategically located within the Tier 1 North West Minerals Province, the project benefits from proximity to major infrastructure corridors, including the Flinders Highway, Great Northern Railway, and the forthcoming $5 billion Copperstring 2032 powerline. These assets enhance logistical efficiency and support future energy requirements.

Community Engagement and ESG Commitment

QEM continues to prioritize community relations and environmental, social, and governance (ESG) transparency. The company actively participates in local events and maintains regular communication with stakeholders in Julia Creek. Its ESG reporting aligns with the World Economic Forum’s Stakeholder Capitalism Metrics, reflecting a structured approach to sustainability and social responsibility.

Looking ahead, QEM has applied for additional funding through Queensland’s Collaborative Exploration Initiative, which could further underpin exploration and beneficiation efforts. The company’s trajectory suggests a methodical advancement toward establishing a long-term supply of vanadium electrolyte for energy storage and liquid fuels, supporting the broader energy transition.