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

Location
Northern Territory, Australia.

Project Owner/s
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, 7.99% titanium dioxide 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 vanadium pentoxide 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 vanadium pentoxide, titanium dioxide 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 vanadium pentoxide, 236 000 t/y of titanium dioxide (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 jobs 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%.

Capital Expenditure
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.

Planned Start/End Date
Subject to approvals, TNG expects construction of the refinery to begin in 2020.

Latest Developments
TNG has signed binding heads of agreement with rail operator Genesee & Wyoming Australia (GWA) to provide rail haulage services for the Mount Peake vanadium/titanium/iron project.

The agreement covers the transport of magnetite concentrate produced at the Mt Peake mine site from the proposed Adnera rail siding to the TIVAN processing facility, in Darwin.

The scope of the services also extends to the transport of three end-products produced at the TIVAN facility to the Darwin port, before shipping to TNG customers.

GWA will provide all the necessary rail transport plant and equipment, including locomotives, wagons, crew vans and fuelling equipment.

TNG MD Paul Burton has said that the signing of the MoA with GWA is a cornerstone of the logistics chain for the Mt Peake project and marks an important step in its development strategy.

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.