11/09/2019 - 11:34

TNG to trim Mt Peake capex to $824m

11/09/2019 - 11:34

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TNG has conducted a review of its planned 2 million tonnes per annum Mount Peake vanadium-titanium-iron project, which revealed a potential reduction in capital costs of $29 million.

TNG to trim Mt Peake capex to $824m
Mount Peake is located about 235km north of Alice Springs.

TNG has conducted a review of its planned 2 million tonnes per annum Mount Peake vanadium-titanium-iron project, which revealed a potential reduction in capital costs of $29 million.

The review also detailed a 37-year mine life, a capital payback of 2.8 years, with a life-of-mine net cash flow of $12.2 billion.

The Subiaco-based company is currently in the midst of conducting its front-end engineering and design study, which it said was proceeding well.

Its mine management plan and environmental impact statement for Mount Peake, which is located about 235 kilometres north of Alice Springs, is nearing completion.

In June, TNG signed a binding contract with rail operator Genesee & Wyoming Australia to haul product from Mount Peake more than 1,100km to a processing facility in Darwin.

Earlier this year, the company appointed Germany’s KfW IPEX-Bank to lead a $US600m debt raising to underpin the project’s development.

TNG has a binding life-of-mine offtake agreement in place with Woojin Industries in South Korea, to purchase a minimum 60 per cent of Mount Peake’s vanadium product.

Shares in TNG were up 1.2 per cent to trade at 8.6 cents each at 1.10pm AEST.

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