Name of the Project
Dubbo zirconia project (DZP).

Location
New South Wales, Australia.

Client
Alkane Resources.

Project Description
The DZP is a development project based on one of the world’s largest in-ground resources of rare metals and rare earths.

A variety of rare-earth and metal concentrates will be produced, including zirconium, niobium, hafnium, tantalum, yttrium, europium, dysprosium and neodymium.

The DZP is expected to mine 19.5-million tonnes of ore over 20 years, producing 75 000 t/y of concentrate.

The project includes:
• a small opencut mine;
• processing and refining facilities, a plant and equipment, including a 90-m-high stack;
• chemical storage areas, including a tank farm;
• waste encapsulation cells;
• water and gas supply pipelines;
• road upgrades; and
• the potential reopening of the adjoining railway line.

While the project is proposed to operate for 20 years at the proposed extraction rate, the ore deposit will not be exhausted over this period. Consequently, there is potential for additional mining in future.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The economics of the project were adjusted following the completion of the front-end engineering design (Feed) in August 2015. The Feed resulted in a capital expenditure adjustment, from the A$1-billion estimated in the 2013 definitive feasibility study, to A$1.3-billion, based on a higher Australian/US dollar exchange rate.

Duration
Not stated.

Latest Developments
Alkane has signed a nonbinding memorandum of understanding (MoU) with technology firm Siemens over the Dubbo zirconia project.

The MoU details Alkane and Siemens’ joint intention to enter into separate agreements to progress and implement business opportunities, including an offtake of Dubbo products.

Alkane has also stated its intentions to procure equipment and systems from Siemens, including advanced infrastructure management systems, power solutions, mechanical plant and services.

The Dubbo project is expected to produce 16 000 t/y of zirconium products, which includes zirconium dioxide, speciality zirconium chemicals and other value-added zirconium products. At full one-million-tonne-a-year throughput capacity, the project will deliver zirconium revenue of between $100-million and $120-million, equating to about 30% of the total project revenue.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Alkane Resources, tel +61 8 9227 5677, fax +61 8 9227 8178 or email info@alkane.com.au.