Astron signs first-phase funding deal for Donald
PERTH (miningweekly.com) – Mineral sands developer Astron Corporation on Monday announced that its subsidiary Donald Mineral Sands had entered into a framework agreement with China Machinery Engineering Corporation (CMEC) to fund the first stage of the Donald project, in Victoria.
The company reported that the framework agreement set out the parties' intentions to agree on an engineering, procurement and construction (EPC) contract for the supply and installation of equipment for the Donald project, and to assist in funding the project.
CMEC would be appointed as the EPC contractor for the first phase of the project, which would require project funding of some $100-million, of which CMEC would provide 85% in the form of seller’s credit from a Chinese bank, or other channels. The balance of the funding would be provided by Astron.
A 2013 prefeasibility study estimated that the Donald mineral sands project would require a capital investment of some $518-million to achieve its full production rate of 950 000 t/y. The project would be ramped up in phases, with initial production set at 475 000 t/y of heavy mineral concentrate.
Over the expected 31-year project life, Donald would generate yearly revenue of $740-million, with yearly operating expenses forecast at $223-million.
Astron told shareholders on Monday that while the framework agreement with CMEC was legally binding under Chinese law, it was subject to certain conditions, including Chinese regulatory approval, and a formal EPC contract, which would still be negotiated.
The two parties would work toward finalising the EPC contract by the end of July, and the funding arrangements within four months of the EPC contract being executed.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
