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 reached an agreement with its long-term strategic engineering partner, Germany-based metallurgical engineering firm SMS group, over a revised project execution strategy for the Mt Peake vanadium/titanium/iron project.

TNG decided to move its proposed TIVAN processing facility from Darwin to a fully integrated single mining and processing operation at Mt Peake in 2021, following a detailed assessment of alternative sites.

An integrated mine-beneficiation processing facility was originally contemplated at the Mt Peake mine site in the initial project scoping study; however, at that time gas and water availability were considered inadequate to meet the project’s requirements.

TNG has said that, in addition to integrating the TIVAN facility at Mt Peake, the ongoing effects of the Covid-19 pandemic has also prompted the company to pursue a revised project execution strategy to align with changes to global conditions for the delivery of major projects, and to capitalise on the commercial opportunities presented by a larger scale, single-site construction project.

Under the original project execution model, SMS group was to provide TNG with a fixed-price engineering, procurement and construction (EPC) proposal for the delivery of the beneficiation plant at the Mt Peake mine site, and the TIVAN processing plant and titanium pigment plant (TPF) in Darwin, following completion and delivery of the front-end engineering design study.

SMS proposed to use Australia-based construction companies as subcontractors to construct the mine site beneficiation plant and the TPF.

SMS group has now agreed to adopt a new strategy for Mt Peake, which will enable TNG to appoint Australia-based EPC contractors.

Under the agreed terms, SMS will submit a proposal for engineering and procurement of the TIVAN processing equipment, which is the core of the TNG processing technology. SMS will work closely with TNG and its nominated contractors to provide any necessary processing, engineering and technical validation work as required for the TIVAN processing plant, and execution planning.

SMS group will also provide product and process guarantees upon a final investment decision.

Meanwhile, TNG can engage engineering and construction companies to undertake the EPC of the mine site beneficiation plant and nonprocess infrastructure. It will also progress build, own, operate; and build, own, operate, transfer options to further reduce capital expenditure.

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); and METS Engineering (process plant construction and operating expenditure).

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