PERTH (miningweekly.com) – The Queensland government is enthusiastic about the restart of ASX-listed EQ Resources’ Mt Carbine tungsten project, saying on Tuesday that the project will bring jobs and economic benefits to the region.
EQ Resources last week awarded a A$179-million contract to NRW subsidiary Golding Contractors to restart openpit mining at Mt Carbine.
Mt Carbine is currently Australia’s only primary tungsten producer, producing about 350 t/y of concentrate from existing tailings and low-grade stockpiles. Once opencut mining begins, production is expected to ramp up to between 60 t a month and 90 t a month.
“This is an important step forward for both Queensland’s growing critical minerals sector, and our renewable energy transition,” Resources Minister Scott Stewart said on Tuesday.
“Demand for critical minerals such as tungsten is increasing exponentially as the world moves towards decarbonisation.
“The transformation of this mine reflects one of the key themes of our Queensland Resources Industry Development Plan, which is to provide new life for old mines. Importantly, this mine will provide up to 135 good, secure jobs for Far North Queenslanders which will also mean economic benefits for the entire region.
“Together our Resources Industry Development Plan will work hand in glove with the Energy and Jobs Plan to help get these minerals out of the ground to build the solar panels, wind farms, electric vehicles and batteries we need for the future.”
EQ Resources CEO Kevin MacNeill said on Tuesday that Mt Carbine was already a major jobs provider in the region and would grow further in coming months as production ramped up.
“The opencut mine will provide a five-fold increase in grade quality which will allow us to become a global leader in tungsten supply. Our plan is for the Mt Carbine mining leases and surrounding exploration tenements to become a top three tungsten producer outside of China.
“We are also looking to make a major contribution to economic development in the Cairns hinterland including upgrading services and providing employment opportunities in a region hit hard by Covid-19 lockdowns.”
An updated bankable feasibility study (BFS) for the Mt Carbine expansion project in May estimated that the project would deliver 38 570 t of tungsten over a ten-year production schedule, resulting in a net present value of A$307-million and an internal rate of return of 477%.
The updated BFS estimated a capital cost of 18.5-million for the project, with the C1 costs estimated at $104/t once full capacity has been reached. Life-of-mine earnings before interest, taxes, depreciation and amortisation has been estimated at A$450-million.