PERTH (miningweekly.com) – Mineral sands miner Base Resources is not expecting to see any material progress at its Toliara project, in Madagascar, until the overhaul of the mining code and the conclusion of presidential elections late in 2023.
In a presentation to Paydirt’s Africa Downunder conference, Base MD Tim Carstens noted that the company was hoping to conclude fiscal terms and the lifting of suspensions at Toliara early in 2024, noting that there would be some 11 months of work to complete prior to a final investment decision (FID) at the project.
The additional work would include the completion of land acquisition, funding, offtake agreements and the award of construction contracts.
Base is tentatively targeting an FID by December 2024, with project construction to take some 27 months, meaning first product shipments are targeted for February 2027.
Over its 38-year mine life, the Toliara operation is now expected to produce an average of 960 000 t/y of ilmenite, 66 000 t/y of zircon and a further 8 000 t/y of rutile,
An updated definitive feasibility study estimated that the project would require an initial capital investment of $520-million for the Stage 1 project to establish a 13-million-tonne-a-year processing operation.
The Stage 2 operation would require a further investment of $137-million to increase capacity to 25-million tonnes a year.