Name of the Project
Century zinc mine project.

Location
The Century zinc mine is located in North West Queensland, Australia.

Client
New Century Resources.

Project Description
The project aims to restart operations at the Century zinc mine, which has proven ore reserves of 77.3-million tonnes at 3.1% zinc equivalent for the mine’s tailings deposit.

The results of the restart feasibility study have concluded that the Century mine will again be one of the top ten zinc operations in the world, with steady-state production forecast at 507 000 t/y of zinc concentrate at 52% zinc over an initial 6.3-year mine life from only the Century tailings deposit.

The deposit will be mined using hydraulic mining methods. At a capacity of 15-million tonnes a year, this process will involve the use of five track-mounted monitor units, four actively working individual faces throughout the deposit and one on standby.

Minor modifications will be made to the existing Century mine processing plant to enable it to process reclaimed tailings slurry at a design throughput of 15-million tonnes a year. This includes the installation of an additional seven 100 m3 float cells and four regrind mills during the first 15 months of operations.

Operation of the mine and plant will take place in stages for the systematic expansion of hydraulic mining operations.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at an 8% discount rate, of A$1.31-million and an internal rate of return of 270%.

Value
Start-up capital costs are estimated at $50-million.

Once in production, further ramp-up capital of A$63-million will be invested over a 15-month period for a total capital requirement of A$113-million to bring the operation into full production at 15-million tonnes a year. Ramp-up capital is proposed to be funded from operational cash flow.

Duration
First production is expected in the third quarter of 2018.

Latest Developments
New Century Resources has contracted Sedgman as its engineering, procurement and construction (EPC) contractor.

Sedgman's works, including the now complete early-works contract, is valued at A$40-million.

The work under the EPC contract comprises the refurbishment and commissioning works for the Century processing plant at Lawn Hill and the Karumba port facility.

Sedgman is also providing operations readiness services.

The EPC contract scope also includes civil, structural, mechanical, piping and electrical work requirements as determined by the front-end engineering design study.

Early works and long lead item procurement activities completed to date include the procurement of electrical and pumping equipment in addition to the start of general refurbishment activities. The remainder of the Century processing plant and Karumba port refurbishment and commissioning process is expected to take up to five months, which is in line with the planned schedule for operations to start in the third quarter.

Following completion of a competitive tender process, which included bids from three specialist pipeline construction and operation companies, Ausenco has been selected as the preferred bidder for the complete refurbishment and commissioning of operations associated with the Century zinc processing plant, slurry pipeline and Karumba port facility, in Queensland.

The concentrate slurry pipeline refurbishment is expected to take up to three months, which is in line with the planned schedule for operations to start in the third quarter.

Key Contracts and Suppliers
Sedgman (EPC contractor) and Ausenco (preferred bidder for the complete refurbishment and commissioning of operations associated with the Century zinc processing plant, slurry pipeline and Karumba port facility).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
New Century Resources, tel +61 8 6142 0989 or email info@newcenturyresources.com.