Metals X Rentails upgrade to cost $205m

Metals X has released an updated definitive feasibility study for an expansion of its half-owned Renison tailings retreatment project (also known as Rentails) in Tasmania, which is expected to cost $205 million.

Perth-based Metals X owns a 50 per cent stake in the Bluestone Mines Tasmania joint venture, which in turn wholly owns the Renison tin mine.

The mine produces 7,000 tonnes of tin in concentrate a year, and is currently being expanded through the introduction of ore sorting, which is expected to increase production to up to 8,500t.

It produces a smaller amount of copper per year.

In an updated definitive feasibility study today, Metals X detailed plans for the joint venture to spend $205 million to build new infrastructure at Renison; the Rentails operation will allow for the reprocessing and recovery of an extra 5,400t of tin and 2,200t of copper per year from the existing historical tailings at Renison.

The new infrastructure will sit about 1.5 kilometres north-west from the existing Renison concentrator.

All-in sustaining costs for the combined operation is expected to be less than $17,000 per tonne, according to Metals X, compared with the prevailing tin price of about $26,000/t.

“On the basis of the compelling economics, Metals X and the BMTJV have commenced discussions with various parties in relation to financing options and establishing the timing of long lead time items, final approvals and the capacity of suppliers to service Rentails,” Metals X said.

Shares in Metals X were 3.7 per cent higher to 70 cents each at 11am.