TNG signs rail deal for Mt Peake

TNG has signed a binding contract with rail operator Genesee & Wyoming Australia to haul product from the Mount Peake vanadium-titanium-iron mine more than 1100 kilometres to a processing facility in Darwin, Northern Territory.

Mount Peake is located approximated 235 kilometres north of Alice Springs, and Subiaco-based TNG said it will utilise Genesee & Wyoming’s Tarcoola-to-Darwin rail line to transport magnetite concentrate 85 kilometres from the mine site.

It will be transported to the proposed Tivan processing facility in Darwin, and then to a port at the city.

At the processing facility, TNG intends to produce vanadium pentoxide, titanium pigment and iron ore fines.

Earlier this month, TNG said it will raise $15 million via a share placement and rights issue to further the development of Mount Peake.

Mount Peake has a forecast capex of $853 million, and in May Switzerland-based DKSH signed an offtake agreement for all of Mount Peake’s titanium, equating to up to 150,000 tonnes of the commodity per annum.