General Mining expects attractive returns from Mt Cattlin restart
PERTH (miningweekly.com) – An independent review into the Mt Cattlin spodumene/tantalum mine, in Western Australia, has confirmed attractive returns if the project is restarted.
Earlier this year, ASX-listed General Mining Corporation inked an agreement with fellow-listed Galaxy Resources to acquire a 50% stake in the mine for A$25-million.
“Mt Cattlin represents an exceptional opportunity for General Mining to enter the lithium market at low capital costs and at a time of increasingly robust global demand for the commodity,” said MD Michael Fotios.
Based on the current mineral resource and ore reserve estimates at Mt Cattlin, the independent review estimated that the project could deliver some 11 500 t/y of spodumene over an initial 17-year mine life. The project was estimated to require a capital investment of A$14.7-million to restart and could generate a life-of-mine revenue of A$1.16-billion and a net cash flow of A$526-million.
The project was expected to have a throughput rate of 800 000 t/y and would produce an additional 85 924 t of tantalite.
Previously mined for both spodumene and tantalum by-products, the Mt Cattlin operation produced over 100 000 t of spodumene concentrate before the operation was suspended in 2012.
“With General Mining benefiting from approximately A$130-million in historic sunk capital, which shortens its lead time to production, and a much improved commodity price and exchange rate environment, the company is well placed to be the first ASX-listed miner to deliver spodumene concentrate to the global market in early 2016,” Fotios said.
He added that, as a result of the change in lithium metal prices since the current ore reserve at Mt Cattlin was first calculated, the company anticipated a further upward revision to its financial model in the near future.
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