PERTH (miningweekly.com) – Copper miner CuDeco has taken back full control of the proposed Cloncurry multi-load rail facility, in Queensland, the company said on Wednesday.
Both its joint venture (JV) partners GlencoreXstrata and China’s Minmetals had recently modified their mining operations and timetables at their respective projects, which meant that the mining lease application covering the multi-load rail project reverted back to CuDeco.
CuDeco had been the original owner of the multi-load project, but three years ago, the Queensland government requested that the company allow GlencoreXstrata and Minmetals to enter into a JV over the project, with each party holding one-third ownership.
The original design by CuDeco had envisaged a 1 200 m spur line off the main Mount Isa/Townsville rail line, but design changes by the JV partners changed the project to a balloon loop, to accommodate all parties.
The project had initially been designed to handle CuDeco’s concentrate from its Rocklands copper project, and to assist other mining companies with concentrate transport to the Port of Townsville, on a commercial basis.
Prior to the formation of the JV, CuDeco had been dealing with enquiries and letters of intent from other third-party miners in the region to use the facility, but these arrangements were restricted under the JV.
CuDeco said on Wednesday that with the company now regaining full control of the rail project, it could resume discussions with other mining companies to gain access to the facility on a user-pay commercial basis.
The Cloncurry multi-rail load facility, combined with CuDeco’s Townsville port facility, would allow local mining companies access to a “mine site to port” solution. The storage capacity, once completed, would allow for the storage of over 400 000 t of material concentrate and would cater for four individual companies, at any one time.
The CuDeco port facility has also been allotted a designated ship loading berth as part of its development approval.
Meanwhile, the company noted that with CuDeco regaining control of the project, financing options for the operation would be clean-cut, without the distractions of third-party involvement, allowing the company to devise a new business model.
The Rocklands project is expected to include a three-million-tonne-a-year processing plant and will produce 480 000 t/y of copper/gold, pyrite/cobalt and magnetite concentrate.
The company recently secured a $100-million credit facility from China’s Minsheng Banking Corporation to complete development work at the mine.