PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has tapped Contract Power as the preferred contractor to build, own and operate a 32 MW hybrid gas and renewable energy solution for its Coburn project, in Western Australia.
Strandline on Wednesday said that the proposed power solution would enable the company to capture energy supply cost savings relative to the definitive feasibility study, which was published earlier this year.
The power station will be located near the mineral separation plant, and is designed for a maximum demand capacity of 16 MW and average consumed power of some 10 MW. Natural gas will be supplied by third parties under an industry-standard long-term liquefied natural gas (LNG) supply agreement, and trucked to an on-site storage and re-vapourisation facility supplied by Contract Power.
Strandline told shareholders that the two companies would now compile final contract documentation, based on a 15-year term.
The appointment of Contract Power as the preferred power contractor followed Strandline’s A$18.5-million capital raise to advance early works development activities, and ASX-listed Primero Group being awarded preferred engineering, procurement and construction work for the the wet concentration plant, mineral separation plant and associated processing circuits.
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.
Products from the development will be used globally in items including ceramic tiles, refractory, paint, titanium metal and welding rod applications. First production is expected within 18 months of the start of project construction.