David Flanagan
Photo by: Bloomberg
PERTH (miningweekly.com) – A value engineering study on the Montepuez graphite project, in Mozambique, has found that the project’s capital costs could be cut from $126-million to $42.3-mllion, while operating costs could reduce from $422/t to $337/t.
ASX-listed Battery Minerals told shareholders that the value engineering study, which was commissioned in May, found that the project would benefit from a series of key operating changes, with the capital costs savings stemming from a combination of a staged production ramp-up, smaller infrastructure footprint, a refined mine plan producing higher head grade, an owner-operator mining strategy, lower water consumption and increased recoveries.
“We have identified the optimum operating and financial balance for Montepuez and the outcome is extremely strong,” said Battery Minerals executive chairperson David Flanagan.
“By restructuring the size, mine life and some other key aspects of this project, we can increase the head grade significantly, slash the capital and operating costs, and cut the payback period by more than half.”
Compared with a February definitive feasibility study, the value engineering study has also reduced expected life-of mine from 30 years to ten years, with annual concentrate production reducing from 100 000 t/y to between 45 000 t/y and 50 000 t/y, and average annual earnings before interest, taxes, depreciation and amortization reducing from $27-million to less than $20-million.
“With this robust development strategy now clearly mapped out, we will now move to secure our mining concession, progress the detailed engineering and design work, and step up offtake and funding discussions,” said Flanagan.
“In addition, we have a very exciting drilling programme which we will be kicking off in the coming weeks.”