The Western Australian government has approved the Mulga Rock mining proposal and associated mine closure plan, clearing the way for developer Vimy Resources to implement an early works programme.
Vimy’s earthworks contractor would mobilise personnel and equity to the site immediately, the company said on Friday, noting that the early works programme included an intensive eight-to-ten-week schedule.
“Securing the approvals needed to commence ground disturbing activities at the Mulga Rock project is a significant milestone for the company. It allows Vimy to further derisk the project by achieving ‘substantial commencement’ and continue on the path towards first production by 2025,” commented interim CEO Steven Michael.
Mulga Rock’s project management plan was recently approved and it still requires the Western Australian Department of Water and Environmental Regulation’s ‘work approval’ under the Environmental Protection Act.
The Mulga Rock project is expected to require a capital investment of $255-million, to support a production rate of 3.4-million pounds a year, with a mine life of 15 years. The project is estimated to have a net present value of $393-million and an internal rate of return of 31%.