Name of the Project
SPD vanadium project.
Location
The project is located in a similar geological setting to the mining operations of Rhovan (Glencore), Vametco (Bushveld Minerals) and Mapochs, in South Africa’s Gauteng and Limpopo provinces.
Project Owner/s
Tando Resources.
Project Description
A scoping study has demonstrated the potential for strong financial metrics for Phase 1 at the SPD vanadium project.
The scoping study is based on an indicated and inferred mineral resource of about 169-million tonnes grading 1.07% vanadium pentoxide.
Phase 1 is based on a proposed 2.2-million-tonne-a-year standalone mining and beneficiation operation to generate a +2% vanadium pentoxide concentrate for sale at mine gate.
The project is expected to produce an average of 790 000 t/y of vanadium concentrate over a 25-year mine life.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has net present value estimated at between $68-million and $138-million and a pretax internal rate of return of between 48% and 86%, with a payback of between 1.9 and 2.8 years.
Capital Expenditure
The project will require preproduction capital of between $18.8-million and $20-million.
Planned Start/End Date
Not stated.
Latest Developments
The company is engaged in securing binding offtake agreements with a number of interested parties. The sale price of concentrate will have a significant effect on potential cash flow from the project.
Following completion of offtake negotiations, Tando will seek and evaluate potential options for financing for the preproduction capital expenditure. Both of these agreements will be required to be in place before the start of construction.
From the start of construction, it has been assumed, based on current equipment availability, that the initial concentrate can be produced from the project through dry magnetic separation after five months.
Production of the refined concentrate product will take a further four to five months to start.
Key Contracts and Suppliers
GEMECS (geology, drilling and sampling); Mining Plus (mineral resources, optimisation and mining studies); Sound Mining (mining, operating expenditure); ENC Minerals (process testwork); METS South Africa (process design, capital expenditure, operating expenditure); Red Kite Consulting (environmental assessment) and Noboprox (social studies).
On Budget and on Time?
Not stated.
Contact Details for Project Information
Tando Resources, email contact@tandoresources.com.au.