TNG signs MoU with Downer for Mount Peake development

JOHANNESBURG (miningweekly.com) – Strategic metals company TNG Limited has signed a nonbinding memorandum of understanding (MoU) with Downer EDI, which may pave the way for the engineering and services provider’s involvement in the development of the Mt Peake project, in the Northern Territory.

The two ASX-listed companies have agreed to work together on identifying opportunities for Downer’s involvement in the vanadium/titanium/iron project, TNG announced on Tuesday.

The areas of cooperation under investigation include engaging Downer for the engineering, procurement and construction of the Mt Peake processing plant; for drilling, blasting, loading and hauling minerals and waste materials at the mine site; for operating and maintaining the processing plant; for building, owning and operating all nonprocess infrastructure at the mine site; for interfacing project infrastructure with existing rail facilities and for designing, manufacturing and maintaining rolling stock and locomotives.

“The MoU with Downer further expands the outstanding list of high-quality global companies which have either already agreed or are currently exploring the potential to participate in the funding and development of the Mount Peake project,” MD Paul Burton commented in a statement.

“We are very much looking forward to working with Downer over the coming months to progress towards potentially binding agreements on some of the key areas outlined in this MoU,” he added.

The signing of the Downer MoU follows other significant milestones for the Mt Peake project, including the signing of a binding life-of-mine (LoM) offtake agreement with Korea’s WOOJIN for the offtake of vanadium products and the signing of a binding heads of agreement with global engineering giant SMS Group for the design, engineering and tendering for construction of the TIVAN downstream refinery.

The definitive feasibility study (DFS), which was completed in 2015, forecasts production of 17 560 t/y of high-purity vanadium pentoxide, 236 000 t/y of titanium dioxide and 637 000 t/y of pig iron. The DFS estimates LoM net cash flow of $11.6-billion, a pre-tax internal rate of return of 41% and a net present value of $4.9-billion.