In June, Perth-based mineral sector engineering services provider CPC Engineering was appointed by ASX-listed explorer Syrah Resources to complete the front-end engineering design for the Balama graphite and vanadium project, in Mozambique.
CPC’s role will be to further optimise and derisk the project’s development plan as well as to bring greater certainty to the timing and coordination of key capital equipment.
Initial capital expenditure for the project has been calculated at $138-million – to be paid back in under two years – with an estimated post-tax net present value of $1.1-billion. Average cash operating costs over the life of the mine are expected to be $286/t of graphitic ore.
On the appointment by Syrah, CPC CEO Glen Weir said that this was an important part of CPC’s growth strategy, which served to continue CPC’s emerging achievements in the mineral resources sector.
Balama, a high-grade openpit mine, is Syrah’s flagship project, hosting the world’s largest graphite ore reserve of 81.4-million tons and grading 16.2% graphitic content.
It is located about 260 km west of the regional city of Pemba, in the Cabo Delgado province, in northern Mozambique. At full production, Syrah will export about 380 000 t/y of concentrate, grading 95% graphitic content, through the deep water container port of Nacala.
CPC is currently also providing engineering and design services for Canada-based mining and metals company First Quantum Minerals’ Enterprise nickel plant, in Zambia, and also recently completed key project work at midtier explorer and developer Sandfire Resources’ DeGrussa copper mine, in Western Australia.
The company has also just delivered the construction of the crusher circuit and mill building at the Tropicana gold mine, about 300 km east of Kalgoorlie, Australia.