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[Ferro-Alloys.com] The Palaszczuk Government will build and own a new $10m vanadium processing plant in Townsville.

The vanadium facility will be part of the Palaszczuk Government's plan to make Queensland a leading producer and exporter of new-economy minerals, with several vanadium mines planned for the North West.

Vanadium is used for the construction of large-scale grid batteries that store their charge in tanks of liquid which means redox batteries can be built to a much larger scale.

Treasurer and Minister for Trade and Investment Cameron Dick said Australia had the world's third largest deposits of vanadium resources, but didn't produce any processed vanadium.

"The mining companies looking to process vanadium at an industrial scale don't have the capital necessary to make that jump, that's where our Government can step in," Mr Dick said.

"Through our $520 million Invested in Queensland program, we will put at least $10 million towards this common-user facility, with the final amount depending on the outcome of the construction tender."

Mr Dick said the common-user facility could be used by multiple, smaller mining companies without the available capital to set up their own processing facilities.

"This is an important step in attracting further investor interest and future off-take agreements," he said.

"Once producers can see for themselves how processing occurs, they will have the confidence to invest in more manufacturing infrastructure and more jobs."

Mr Dick said they were in the final stages of site selection for the facility in Townsville.

"Mining companies will be able to transport ore from their mine site to Townsville, enabling them to begin producing mineral samples at scale," he said.

The North West Minerals Province is a significant global source of these minerals, and the Palaszczuk Government is determined to keep supporting the resource companies that are extracting them.

Minister for Resources and Member for Townsville Scott Stewart said the project is a key milestone in delivering on the work of the North West Minerals Province Taskforce.

"In September this year, the Palaszczuk Government joined with Multicom Resources to announce the go-ahead for the $250 million Saint Elmo vanadium mine near Julia Creek," Mr Stewart said.

"The Saint Elmo mine alone will support up to 400 regional jobs, laying the foundation for a potential next level industry in Queensland manufacturing vanadium redox flow batteries."

Other vanadium projects include QEM's Julia Creek vanadium and oil shale project and Horizon Minerals Richmond - Julia Creek Vanadium Project

Construction of the Townsville plant is expected to start in 2022, scheduled to begin operating in 2023.

• [Editor:tianyawei]