PERTH (miningweekly.com) – An optimised definitive feasibility study (DFS) into the Ardmore phosphate rock project, in Queensland, has reduced the preproduction capital cost requirements of the project while increasing the pre-tax net present value by some 56%.
ASX-listed Centrex Metals on Thursday reported that capital cost estimates for the project have declined from A$77-million to A$69-million, while the post-tax net present value has increased from A$109-million to A$192-million, with the internal rate of return increasing from 30% to 54%.
The planned annual production of 800 000 t/y, and the mine life of ten years has remained unchanged, while the projected operating costs have declined from A$149/t to A$138/t.
Centrex said on Thursday that cost saving opportunities were identified following a review of the mine design, equipment selection, operations management and mine infrastructure.
With the modular process plant due for completion in mid-2019, Centrex is on track to deliver its first phosphate shipments to customers during this year.
The company is targeting an initial 30 000 t of production from the plant to provide potential customers with 5 000 t trial shipments in order to secure offtake to support full-scale project financing.