Name of the Project
Mount Peake vanadium/titanium/iron project.

Location
Northern Territory, Australia.

Client
TNG.

Project Description
A definitive feasibility study (DFS) has outlined a world-class project with an initial 17-year mine life.

The project has a maiden probable ore reserve of 41.1-million tonnes (50% of mine life) at 0.42% vanadium pentoxide (V2O5), 7.99% titanium dioxide (TiO2) and 28% iron oxide at a cutoff grade of 15% iron.

The study has converted 65% of the measured resource, with a 50% increase in V2O5 grade.

The DFS is based on the production of magnetite concentrate on site in two stages at Mount Peake.

Stage 1 involves the construction of a three-million-tonne-a-year operation.

Stage 2 is planned for years 4 to 5, where mine production is projected to increase from three-million tonnes a year to six-million tonnes a year, and the capacity of the concentrator and refinery to double.

The DFS assumes that concentrate will be trucked to a rail siding and then railed north to a TIVAN refinery facility, located about 10 km from Darwin port. The facility will produce high-purity V2O5, TiO2 concentrate and iron oxide from the magnetite concentrate.

Associated downstream plants will produce high-grade titanium pigment and pig iron.

The TIVAN refinery will have a design feed capacity of 900 000 t/y of magnetite concentrate and is proposed to expand to a maximum production capacity of 1.8-million tonnes in Year 5.

The refinery comprises feed preparation, leaching, solvent extraction and acid regeneration.

The DFS estimates average production of 17 560 t/y of V2O5, 236 000 t/y of TiO2 (pigment) and 637 000 t/y of pig iron.

Potential Job Creation
Mount Peake has the potential to create 500 jobs during construction and 175 to 250 ongoing roles during operation.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of A$4.9-billion and an internal rate of return of 41%.

Value
The preproduction capital cost is estimated at A$970-million, which includes all infrastructure, access/haul roads, mining, rail works, water supply, the Darwin refinery and port handling costs, as well as a concentrator, camp and tailings dam.

Duration
Subject to approvals, TNG expects construction of the refinery to begin in 2020.

Latest Developments
The Northern Territory government has granted TNG mineral leases for its Mount Peake vanadium/titanium/iron project.

The four mineral lease tenements cover the proposed openpit mine, the associated mine and plant infrastructure, the camp site and the rail-loading facility area.

Mount Peake is forecast to produce 243 000 t of high-purity vanadium pentoxide, 3.5-million tonnes of titanium pigment and 10.6-million tonnes of iron oxide over a 17-year mine life. 

The company is now focused on moving ahead with project finance negotiations.

Key Contracts and Suppliers
SMS Group (design, engineering and tendering for construction of the TIVAN downstream refinery).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
TNG, tel +61 8 9327 0900, fax +61 8 9327 0901 or email corporate@tngltd.com.au.
SMS Group, tel +49 211 881-0, fax +49 211 881 4902 or email communications@sms-group.com.