Vital’s tungsten project to cost A$172m, DFS shows
PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Watershed tungsten project, in Queensland, has placed a A$172-million price tag on the project’s development, owner Vital Metals reported on Wednesday.
The DFS concluded that the project could support a 2.5-million-tonne-a-year operation for a mine life of ten years, based on a maiden ore reserve of 21.3-million tonnes, grading 0.15% tungsten, for 31 400 t of contained tungsten.
Operating costs have been estimated at an average of A$56-million a year.
The project was expected to generate revenue of more than A$1-billion over its mine life, and would have a net present value of A$112-million and an internal rate of return of 22%.
Vital MD Mark Strizek said on Wednesday that the completion of the DFS was a major milestone for the company, with the results demonstrating the project’s strong technical fundamentals and financial returns.
The delivery of the DFS was expected to act as the catalyst for project partner Japan Oil, Gas and Metals National Corporation (Jogmec) to transfer its 30% shareholding into a new joint venture (JV) partner that would have an offtake interest in the project, and the responsibility for arranging its share of the project finance.
Strizek said that Vital would work with Jogmec to secure the new Japanese JV partner to progress the Watershed project.
“The process is already well under way, and pending the successful transfer of Jogmec’s interest and the completion of a suitable financing package for Vital’s share of the development costs, we hope to start construction at Watershed in 2015 and have first ore production before the end of 2016.”
The project was currently fully permitted and had all its mining leases, environmental and indigenous land use agreements in place.
Comments
Research Reports
Projects
Latest News
Showroom
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
