04/05/2021 - 14:43

Strandline begins Coburn construction

04/05/2021 - 14:43

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Strandline Resources will proceed with the development of its $338 million Coburn mineral sands project in WA's Gascoyne region, set to unlock 300 jobs during construction.

Strandline begins Coburn construction
Strandline will begin construction of its Coburn mineral sands project in WA. Photo: Strandline Resources

Strandline Resources will proceed with the development of its $338 million Coburn mineral sands project in the Gascoyne, which will provide 300 jobs during construction. 

In announcing the final investment decision for Coburn on Tuesday, Strandline said the project was fully funded through until production, scheduled to begin in the second half of calendar 2022.

Coburn is supported by a $150 million loan from federal government agency the Northern Australia Infrastructure Facility, and a $US60 million senior secured bond issue.

Strandline managing director Luke Graham said Coburn would support the state’s growing demand for critical minerals such as zircon, titanium and rare earths.

“The project is set to benefit from increasing demand and falling supply of its critical minerals following years of under-investment in new projects,” he said.

“Coburn is a world-scale project in a tier one location, and achieving FID is consistent with Strandline’s strategy to develop and operate high margin, expandable mining assets with market differentiation and relevance in the sector.

“Coburn will also provide significant public benefit, employment and new business opportunities as well as export income for the nation.”

The project is expected to create 300 direct jobs during construction and a further 150 jobs throughout its 22.5-year operating life.

Mining is expected to continue until 2045, according to a definitive feasibility study released mid-last year, with a potential to extend until 2060.

The project has a pre-tax net present value of $705 million and is expected to generate $4.4 billion in revenue throughout its initial operating life.

Shares in Strandline closed up 2.5 per cent to close at 20 cents.

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