Photo by: Mayur Resources
Name of the Project
Orokolo Bay industrial sands project.
Location
Papua New Guinea.
Project Owner/s
Mayur Resources.
Project Description
A definitive feasibility study (DFS) on the project has reinforced its status as a simple, low capital expenditure and financially robust project with multiple product revenue streams.
The project aims to establish a five-million-tonne-a-year mining and processing operation.
The project will produce several products, including vanadium titano-magnetite (VTM), densemedia separation (DMS) magnetite, construction sands and a zircon-rich valuable heavy mineral concentrate. The mine will produce 400 000 t/y of vanadium titano-magnetite, DMS magnetite DMS of 100 000 t/y, zircon concentrate of 10 000 t/y and one-million tonnes a year of silica construction sands.
The project will be completed in two phases.
Phase 1 will provide all the capability and infrastructure for a trial phase.
Phase 1 will enable Mayur to extract and beneficiate 100 000 t of vanadium titano-magnetite for use in smelting trials in China. The processing methodology for Phase 1 is constrained to a single module containing the wet magnetic beneficiation circuit to provide the required tonnages for the trials.
Phase 2 entails the installation of the entire suite of beneficiation circuits – spirals, wet high-intensity magnetic separators, up-current classification, shaking tables and DMS production, as well as the extension of the Phase 1 capability.
The proposed processing circuit involves delivery of the run-of-mine ore to one of two relocatable 2.5-million-tonne-a-year concentrators by front-end loader or haul trucks, where the material will be fed through a vibrating screen to remove organic and oversized material, followed by desliming and two-stage ore upgrading.
The project has an estimated 15-year mine life.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an estimated post-tax (real) net present value, at a 10% discount rate, of $131-million and an internal rate of return of 103.7%, with a payback of 1.1 years from the start of operations.
Capital Expenditure
The project is estimated at $20.48-million.
Planned Start/End Date
Not stated.
Latest Developments
Mayur has finalised the funding structure for the project.
Mayur has finalised a series of legally binding contractual agreements with Indonesia-based PT SEA First Nickel Industry (PTSFNI), which will gain a 51% equity stake in the project.
PTSFNI has agreed to fully fund the development of the Orokolo Bay project through to nameplate capacity output of 400 000 t of VTM concentrate, 100 000 t of DMS material, one-million tonnes of construction sand and 10 000 t of zircon concentrate.
Should the development of Orokolo Bay exceed A$25-million, PTSFNI will top up the funding and receive priority repayment of that additional amount.
PTSFNI also has the exclusive right to earn a 51% ownership stake in four of Mayur Resources’ other mineral sands projects.
In addition, the Indonesian company will become a significant shareholder in Mayur Resources through an offmarket placement, acquiring 9.9% of the company at a 15% premium to the 30-day volume weighted average price before the announcement.
The placement entails 33.27-million shares at 22c a share.
Key Contracts, Suppliers and Consultants
Siecap (DFS lead and study management); Groundworks Plus (resource and reserve estimation, and mine planning and design); IHC Robbins/CRL (metallurgical testwork); CRTH/Siecap (plant design); Siecap (barging system design and financial modelling and evaluation); Coffey/Tim Omundsen; and Social Environmental & Research Consultancy/Tim Omundsen (social studies).
Contact Details for Project Information
Mayur Resources, tel +61 7 3157 4400.