Canada-based nickel mining company FPX Nickel has extended its Global Generative Exploration Alliance with the Japan Organization for Metals and Energy Security (JOGMEC), turning it into an open-ended joint venture (JV).
After two years of collaboration, the partnership will continue to focus on identifying and acquiring high-quality awaruite nickel properties globally, particularly those geologically similar to FPX’s flagship Baptiste Nickel Project in British Columbia.
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The Generative Alliance has established a budget of C$1.5bn for its third year, running from April 2025 to March 2026.
FPX Nickel will now take a majority position in the alliance, contributing 60% of the expenditures and securing a corresponding ownership stake in new JV projects generated by the alliance.
The alliance has gathered more than 2,000 samples through ongoing evaluations in ten global and four Canadian jurisdictions, leading to the acquisition of the alliance’s first Designated Project, with details expected to be announced in the coming months.
FPX vice-president exploration Keith Patterson said: “Having made excellent progress during the first two years of our global exploration partnership with JOGMEC, we are excited to have identified and secured the first Designated Project for this joint venture.
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By GlobalData“Ongoing activities continue to reinforce confidence in our targeting strategy, and we look forward to securing and announcing additional large-scale awaruite property acquisitions in the third year of the Generative Alliance.”
The funding structure for the alliance has evolved since its inception in April 2023. JOGMEC initially funded 100% of the C$650,000 budget in the first year.
The second-year budget expanded to C$1.5bn, with JOGMEC providing 60% after fulfilling its initial commitment, and FPX contributing the remaining 40%.
Moving into the third year, FPX will increase its funding share to 60%, with JOGMEC covering the remaining 40%.
Designated Projects that emerge from the alliance’s efforts will be jointly owned, with FPX holding a 60% stake and JOGMEC 40%, from 1 April 2025 onwards.
Each project will have a dedicated work programme and budget aimed at testing and developing the identified targets.
A JOGMEC representative said: “JOGMEC is very pleased to proceed with Year Three activities with a view to identifying significant new awaruite deposits, which could be a globally significant, low-carbon source of nickel for the electric vehicle battery supply chain toward the realisation of a carbon-neutral society.”
In September 2023, FPX Nickel signed a memorandum of understanding with JOGMEC and the Prime Planet Energy & Solutions JV to bolster the battery metal supply chain with a reduced environmental footprint.
