PERTH (miningweekly.com) – Federal Resources, Water and Northern Australia Minister Keith Pitt on Wednesday said that the Coburn mineral sands project, in Western Australia, would boost the government’s Critical Minerals agenda.
A A$150-million loan from the Northern Australia Infrastructure Facility (NAIF) was recently approved for ASX-listed Strandline Resources to develop the Coburn project, with Pitt saying that the project would provide jobs and investment for the nation’s resources sector and would increase economic activity in the region.
"The project is expected to benefit the local region to the tune of A$922-million over 25 years and could create up to 315 jobs during the construction phase and up to 190 jobs during the operations phase,” Pitt said.
"It’s also going to be a shot in the arm for our critical minerals sector, with products from the development to be used in items like ceramic tiles, refractory, paint, titanium metal and welding rod applications."
Pitt said the Coburn project was one of a range of resources projects that NAIF had approved which would provide an extra boost to the government’s Critical Minerals agenda.
“As global demand for critical minerals that underpin the world’s advanced technologies continues to grow, the government is committed to supporting projects across the sector’s supply chain,” he added.
Located 240 km north of Geraldton, the Coburn project has ore reserves of 523-million tonnes and an initial mine life of 22.5 years at a planned average mining rate of 23.4-million tonnes a year.
First production is expected within 18 months of the start of project construction.
Strandline recently noted that the NAIF loan would be provided in two tranches, and would be based on a 15.5-year term.
The first tranche of up to A$130-million will go towards the construction of the core mine infrastructure, while the second tranche of A$20-million will fund a potential future northern access road, linking the project more directly to the Denham community in Shark Bay.
Assistant Minister for Northern Australia Michelle Landry said Strandline Resources’ project is a prime example of the Australian government’s ongoing commitment to regional communities during Covid-19.
"The partnership between NAIF and the Australian government will continue to play a critical role in developing Northern Australia as we move to a post-Covid economy.
"Projects financed through NAIF loans stand to deliver a much needed boost to local jobs and investment in regional areas, at a time when they need it the most," Landry said.
NAIF has so far approved loans to a range of resource projects, across the iron-ore, bauxite and potash sectors. This loan means NAIF has now approved more than A$2.1-billion in loans to projects right across the north, with A$1.2-billion approved in the last 12 months.