TMA awards big Gabanintha contract

TECHNOLOGY Metals Australia has selected Denmark-based mineral processing major FLSmidth as the preferred supplier of the roasting kiln, a key element for its A$454 million Gabanintha vanadium project, near Meekatharra in Western Australia.
TMA awards big Gabanintha contract TMA awards big Gabanintha contract TMA awards big Gabanintha contract TMA awards big Gabanintha contract TMA awards big Gabanintha contract

The pilot kiln in the US was important for the DFS.

Haydn Black

Reporter

The value of the proposed supply contract is around $50 million.
 
FLSmidth was described as having "world leading expertise in rotary roasting kilns", and is set to deliver the rotary kiln package to Hastings Technology Metals' Yangibana rare earth project elsewhere in the state.
 
TMA will also talk with FLSmidth on the supply of the crushing, milling and magnetic separation section of the Gabanintha processing plant. 
 
The firms worked together during pilot scale tests completed at a facility in Pennsylvania as part of the Gabanintha definitive feasibility study that outlined a 12,800 tonne per annum project with a 16-year mine life, based only on the 71.2Mt at 1.1% V2O5 high-grade component of the larger resource.
 
Data generated from the pilot-scale rotary kiln test work was used to aid with engineering design, sizing, and cost estimate studies for the bespoke roasting section of the processing circuit.
 
The pair anticipate commencing a six-month front-end engineering and design study and procurement of long-lead items for key equipment for the mill, pending written authorisation.
 
As FLSmidth's equipment qualifies for export credit agency financing support through Denmark's EKF, subject to EKF board approval and due diligence.
 
TMA managing director Ian Prentice said the company would pursue the opportunity to access that funding support, which could be an important part of the overall funding strategy.
 
TMA has the option of terminating the notice with FLSmidth at any time without cause, assuming it pays any outstanding fees.
 
In the pre-COVID-19 era, TMA had hoped to make a development decision on the project last April, but travel restrictions mean it was unable to advance all its offtake and funding agreements.
 
TMA wants Gabanintha to become the next large-scale, low-cost, long life primary vanadium mine in the world, with the DFS estimating nearly $1.1 billion in free cashflow.
 
TMA shares were up 9% in late trade, valuing the stock at $16 million. It has traded between 5.6-24c over the past year.

 

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