PERTH (miningweekly.com) – The Queensland Department of Environment and Science has issued an environmental permit for a start-up mining and processing operation at the Ardmore phosphate rock project.
ASX-listed project owner Centrex Metals on Monday told shareholders that the environmental authority would enable the company to progress its start-up operations to produce 30 000 t of premium-grade rock phosphate concentrate, providing 5 000 t to 6 000 t for shipments to potential customers in the second half of 2019.
The approval included the installation and operation of a 70 t/h modular wet processing plant, which is currently being fabricated.
An October definitive feasibility study estimated that the project would require a capital investment of around A$77-million to produce 800 000 t/y of premium-grade phosphate rock concentrate over a mine life of ten years.
The project is estimated to have a pre-tax net present value of A$172-million and an internal rate of return of 40%.
Centrex has previously said that the start-up operation would significantly de-risk the project technically and commercially, and that the start-up plant would be readily upgradable for full-scale operations.
Project financing for the Ardmore project is targeted for the second half of 2019, in line with securing offtake agreements. Full scale production has been targeted for the start of 2021.