TNG cuts costs

THE potential of the Mount Peake vanadium-titanium-iron project in the Northern Territory has been upgraded following completion of an update to its feasibility study by 100% owner TNG that has knocked A$117 million from capital costs, although operating costs are up almost $20 per tonne.

TNG cuts costs TNG cuts costs TNG cuts costs TNG cuts costs TNG cuts costs

The update just has cut the payback period for the new $853 million development by one year to three years and squeezed an additional 3% on the pre-tax internal rate of return, although production costs have risen from $167/t to $185/t.

The company said the enhanced financial returns reflected an optimised processing flowsheet and updated commodity price assumptions, which should see pre-tax net annual average cashflow that has decreased from the expected $785 million, estimated in mid-2015, to $738 million.

The company expects to generate around $11.6 million over the life of the mine, assuming it can garner US$22,400/t for vanadium pentoxide, $3500/t for titanium oxide pigment and $410/t for pig iron.

TNG boss Paul Burton said the company had undertaken a lot of w...

topics

loader