PERTH (miningweekly.com) – ASX-listed TNG has reached an agreement with its long-term strategic engineering partner, Germany-based metallurgical engineering firm SMS group over a revised project execution strategy for the Mt Peake vanadium/titanium/iron project, in the Northern Territory.
TNG last year took the decision to move its proposed TIVAN processing facility from Darwin to a fully integrated single mining and processing operation at Mt Peake, following a detailed assessment of alternative sites.
An integrated mine-beneficiation-processing facility was originally contemplated at the Mt Peake mine site in the initial project scoping study, however at that time gas and water availability were considered inadequate to meet the project’s requirements.
TNG said on Friday that in addition to integrating the TIVAN facility at Mt Peake, the ongoing effects of the Covid-19 pandemic had also prompted the company to pursue a revised project execution strategy to align with changes to global conditions for the delivery of major projects and to capitalise on the commercial opportunities presented by a larger scale, single-site construction project.
Under the original project execution model, SMS was to provide TNG with a fixed-price engineering, procurement and construction (EPC) proposal for the delivery of the beneficiation plant at the Mt Peake mine site, and the TIVAN processing plant and titanium pigment plant (TPF) in Darwin, following completion and delivery of the front-end engineering design study.
SMS had proposed to use Australia-based construction companies as subcontractors to construct both the mine site beneficiation plant and the TPF.
SMS has now agreed to adopt a new strategy for Mt Peake, which would allow TNG the flexibility to appoint Australia-based EPC contractors.
Under the agreed terms, SMS will submit a proposal for engineering and procurement of the TIVAN processing equipment, which is the core of the TNG processing technology, and SMS will work closely with TNG and its nominated contractors to provide any necessary processing, engineering and technical validation work as required for the TIVAN processing plant, and execution planning.
SMS will also provide product and process guarantees upon a final investment decision.
Meanwhile, TNG can engage engineering and construction companies to undertake the EPC of the mine site beneficiation plant and non-process infrastructure, and TNG will progress “build, own, operate” and “build, own, operate, transfer” options to further reduce capital expenditure.