Strandline weighs bigger operation at Coburn
PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has initiated a scoping study to potentially increase the production rate of its Coburn mineral sands project, in Western Australia, by 50%.
The current plans will see Coburn operate at a throughput rate of 23.4-million tonnes a year, over a mine life of 22.5-years, with 876.8-million tonnes to be mined, generating revenues of A$4.3-billion at total operating costs of A$1.8-billion.
Strandline said on Monday that the production increase would be aimed at enabling Coburn to capitalise further on its world-class resource, long mine life, high mineral sands prices and strong demand for offtake among leading customers in the US, Europe and China.
Strandline MD Luke Graham said any future expansion of Coburn would be undertaken once commissioning and steady state production was successfully achieved and would be funded from cashflow.
“There is clearly scope to increase our free cashflow generation and overall financial returns significantly, particularly given the strength of the mineral sands market,” Graham said.
“We have been inundated with requests from customers to consider expanding production and any commitment to do so would be underpinned by further binding sales contracts.
“The potential expansion of Coburn will be considered in conjunction with Strandline’s other strategic growth projects in Tanzania, including the advanced Fungoni and Tajiri mineral sands projects.”
Construction at Coburn is 65% complete and the project is on-budget and on-schedule, with first production of heavy mineral concentrate set for the December quarter of 2022.
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