The Independent Planning Commission of New South Wales, Australia, has given ASX- and TSX-listed Clean TeQ the green light to implement a number of improvements at the cobalt/nickel project, which will allow it to more effectively respond to the rapidly growing demand for the metals that it will produce.
The Modification 4 approval covers amendments to the processing plant design and layout, mine plan and general logistics, diversification of water supply through approval to access surface water from the Lachlan river, as well as consent to produce up to 100 000 t/y of ammonium sulphate for sale as a byproduct.
“While Clean TeQ Sunrsie already had development approval, Modification 4 optimises and further enhances the operability of this globally significant development,” commented CEO Sam Riggall.
The June 2018 definitive feasibility study (DFS) has outlined a case for a project that will deliver 450 871 t of nickel, 84 007 t of cobalt, 250 t of scandium oxide and 2 337 t of scandium hydroxide, over the initial 25-year mine life.
The project also has the capacity to produce about 93.5 t/y of scandium oxide, with a dedicated scandium refinery with an 80 t/y high-purity scandium oxide refining capacity included in the DFS capital cost estimate of $1.33-billion.
The base case scenario predicted a net present value of $1.39-billion and an internal rate of return of 19.1%.
The project is forecast to deliver some $14-billion in revenue over its mine life and it will generate an average of $344-million a year in earnings before interest, taxes, depreciation and amortisation.