Name of the Project
Mount Peake vanadium/titanium/iron project.

Location
Northern Territory, Australia.

Project Owner/s
TNG.

Project Description
As part of the ongoing front-end engineering design (FEED) process for its Mount Peake project, TNG has optimised its planned execution and delivery strategy for the project, delivering savings and reductions in upfront capital costs while maintaining robust economics.

Discussions have confirmed that simplifying the project towards a one-stage build, while minimising capacity and capital expenditure, is most amenable to the targeted debt/equity structure for the project.

The Mount Peake mine site will involve mining the titanomagnetite ore and recovering the magnetite in a concentrate through a beneficiation process.

The company and its advisers have selected a development strategy based on an initial production rate of two-million tonnes a year of ore throughput at the beneficiation plant, corresponding to 100 000 t/y of titanium oxide pigment through the proposed TIVAN processing plant. At a later date, after the financial completion of construction and operation of the two-million-tonne-a-year plant, TNG may consider the option to expand production capacity.

Previous feasibility studies were conducted using three-million tonnes a year run-of-mine (RoM) production capacity during an initial production stage and increasing capacity to six-million tonnes a year RoM by expanding the plant after four years of production.

Under the new mining schedule, the life-of-mine (LoM) has been extended to 37 years, from the previously planned 20-year LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated pretax net present value, at an 8% discount rate, is estimated at A$2.8-billion, with an internal rate of return of 33% and a payback of 2.8 years.

Capital Expenditure
Preproduction capital expenditure is estimated at A$824-million.

Planned Start/End Date
Not stated.

Latest Developments
TNG has signed a term sheet for an LoM offtake agreement for the entire high-purity iron-ore product to be produced at the Mt Peake vanadium/titanium/iron project.

Under the binding term sheet with Indian mining conglomerate Vimson Group, 100% of the iron product planned at Mt Peake will be bought on a free-on-board basis for a fixed commission.

TNG is expected to produce about 500 000 t/y of iron oxide fines from its TIVAN processing facility, alongside high-purity vanadium pentoxide and titanium pigment products.

The company has also signed a binding term sheet with commodity trader Gunvor over a potential 40% of the planned 6 000 t/y of vanadium pentoxide to be produced at Mt Peake.

The binding term sheet with the Vimson Group represents the final component of an already-impressive portfolio of tier one offtake arrangements spanning all three high-value products to be delivered from the TIVAN refinery.

Key Contracts and Suppliers
Snowden Mining Industry Consultants (revised mining strategy); Como Engineering (beneficiation plant – recoveries, operating expenditure and capital expenditure); McMahon Services (infrastructure – operating and capital expenditures); SMS (process plant flowsheets); and METS Engineering (process plant construction and operating expenditure).

On Budget and on Time?
Not stated.

Contact Details for Project Information
TNG, tel +61 8 9327 0900 or email corporate@tngltd.com.au.