Geologists employed by Metals Exploration Pty. Ltd. discovered nickel enrichment at Greenvale, 180 kilometres West of Townsville, in 1967. Subsequent drilling proved an ore body containing 45 million dry tonnes of ore containing an average of 1.5% nickel and 0.11% cobalt. The Freeport Minerals Company, who had experience in treating lateritic nickel ore, were invited to participate in development of the ore body. This resulted in the formation of the operating company Queensland Nickel Pty. Ltd., jointly owned by Freeport Queensland Nickel Inc. and Metals Exploration Queensland Pty. Ltd. With the completion of successful pilot plant testing of Greenvale ore at the Freeport research facilities at Belle Chasse, Louisiana, a treatment plant was constructed at Yabulu, 24 kilometres North West of Townsville. A 225 kilometre railway line was built connecting the Greenvale Mine and Yabulu Treatment Plant. The ore reduction and ammonia/ammonium carbonate leaching flowsheet is similar to that constructed and operated by the Freeport Minerals Company during World War II at Nicaro, Cuba. Modifications to the Nicaro flowsheet implemented at Yabulu include facilities to recover cobalt in a mixed nickel/cobalt sulphide product and the reduction of nickel