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

Location
Northern Territory, Australia.

Project Owner/s
TNG.

Project Description
As part of the ongoing front-end engineering design process for its Mt Peake project, TNG has optimised its planned execution and delivery strategy for the project, delivering savings and reductions in upfront capital costs while maintaining robust economics.

Discussions have confirmed that simplifying the project towards a one-stage build while minimising capacity and capital expenditure is best suited to the targeted debt/equity structure for the project.

The Mt Peake mine site will involve mining the titanomagnetite ore and recovering the magnetite in a concentrate through a beneficiation process.

The company and its advisers have selected a development strategy based on an initial production rate of two-million tonnes a year of ore throughput at the beneficiation plant, corresponding to 100 000 t/y of titanium oxide pigment through the proposed TIVAN processing plant. At a later date, after the financial completion of the construction and operation of the two-million-tonne-a-year plant, TNG may consider the option to expand production capacity.

Previous feasibility studies were conducted using three-million tonnes a year of run-of-mine (RoM) production capacity during an initial production stage and increasing capacity to six-million tonnes a year of RoM by expanding the plant after four years of production.

Under the new mining schedule, the life-of-mine (LoM) has been extended to 37 years, from the previously planned 20-year LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated pretax net present value, at an 8% discount rate, is estimated at A$2.8-billion, with an internal rate of return of 33% and a payback of 2.8 years.

Capital Expenditure
Preproduction capital expenditure is estimated at A$824-million.

Planned Start/End Date
Not stated.

Latest Developments
TNG has appointed engineering and construction group Clough as the lead engineering and the preferred engineering, procurement and construction (EPC) contractor for Mt Peake.

TNG’s long-standing strategic engineering partner and metallurgical consultants SMS group was previously contracted to deliver an EPC proposal but, owing to disruptions caused by the Covid-19 pandemic, the company reached agreement with SMS to engage with Australia-based engineering and construction companies for the delivery of the Mt Peake project, with the support of SMS and other technical parties.

Under the heads of agreement, Clough will submit a binding fixed-price, lump sum EPC proposal for delivery of the project, subject to completion of any works required and the procurement contracting model. TNG and Clough are also advancing discussions on any additional work that Clough may be required to do to facilitate the development of this proposal, with any such work to be under a separate services agreement, including detailed scope, costs and scheduling.

Key Contracts, Suppliers and Consultants
Snowden Mining Industry Consultants (revised mining strategy); Como Engineering (beneficiation plant – recoveries, operating expenditure and capital expenditure); McMahon Services (infrastructure – operating and capital expenditures); SMS (process plant flowsheets); METS Engineering (process plant construction and operating expenditure); and Clough (lead engineering and the preferred EPC contractor).

Contact Details for Project Information
TNG, tel +61 8 9327 0900 or email corporate@tngltd.com.au.