Name of the Project
Ammaroo phosphate project.

Location
Northern Territory, Australia.

Project Owner/s
Verdant Minerals.

Project Description
A feasibility study has determined that the Ammaroo project is technically feasible and will deliver positive economic benefits if developed in accordance with the prescribed design criteria.

The project has a proven and probable reserve of 32.4-million tonnes grading 18.2% phosphorous pentoxide.

The feasibility study envisages the construction of the mine in two stages.

Stage 1 is expected to produce one-million tonnes a year of phosphate rock concentrate, followed by a replication of the Stage 1 processing and site infrastructure during Year 5 to produce two-million tonnes a year of rock concentrate from Year 6 for a 25-year mine life (Stage 2).

Production is based on conventional truck-and-shovel openpit mining and a screening, crushing, grinding and flotation circuit to produce low-cadmium, high-quality rock concentrate at about 33% phosphorous pentoxide.

Enabling infrastructure, including a rail spur, gas pipeline and water supply infrastructure for the whole mine life and beyond, will be built during Stage 1.

Potential Job Creation
The project will create more than 1 000 jobs and export opportunities.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% nominal ungeared discount rate, of A$344-million and an ungeared internal rate of return of 18.1%.

Capital Expenditure
A$1.5-billion.

Duration
Stage 1 construction is estimated at 15 months.

Latest Developments
SNC-Lavalin Group will undertake a definitive feasibility study (DFS) on the Ammaroo project.

The company is providing engineering and procurement services to assess the feasibility of a 4 500 t/d sulphuric acid plant, which will be part of a fully integrated mine and downstream processing facility to produce ammonium phosphate fertilisers. 

This sulphuric acid plant will use MECS technologies to minimise sulphur dioxide emissions, rendering the plant more sustainable in the long-term.

The MECS Heat Recovery System technology will also be used to recover medium-pressure steam from the sulphuric acid plant, an energy now captured instead of being wasted, consequently providing the majority of energy requirements for the site and removing the need to have additional sources of energy. This will maximise energy efficiency while reducing the overall facility’s reliance on energy supply from external sources and lessen its carbon footprint.

Key Contracts, Suppliers and Consultants
Mining Plus (mine planning); Corem (metallurgical testwork); WorleyParsons (engineering, plant and infrastructure design); CRU (product market and pricing analysis); Balance Advisory (rail and port infrastructure and logistics); GHD (environmental-impact studies); Ground Water Science (hydrogeology and groundwater); Magma Capital (financial modelling and debt advisory); and SNC-Lavalin Group (DFS – sulphuric acid plant).

Contact Details for Project Information
Verdant Minerals, +61 8 8942 0385, fax +61 8 8942 0318 or email info@verdantminerals.com.au.