ASX-listed Manuka Resources has confirmed the national significance of the Taranaki Vanadium Titano Magnetite (VTM) iron sands project, in New Zealand.

For a NZ$1-billion, or $602-million, capital cost, of which at least NZ$55-million will be spent in New Zealand, the project can increase the country’s yearly GDP by NZ$265-million, create an estimated 1 365 new jobs across the economy and generate total export earnings of NZ$854-million every year as one of New Zealand’s top exporters, the company states.

In an economic-impact assessment (EIA) published on April 2, Manuka finds the project can deliver royalties of between NZ$36-million and NZ$54-million and contribute at least NZ$91-million in corporate tax every year to the New Zealand government.

The EIA was prepared for Manuka’s subsidiary, Trans-Tasman Resources, by a leading independent economic consultancy called The New Zealand Institute of Economic Research.

The assessment on the Taranaki VTM project also finds it can create 303 new full-time equivalent jobs across the Taranaki region and Whanganui District, with a yearly direct expenditure of NZ$238-million on a range of industries within New Zealand, across its 20-year mine life.

A prefeasibility study (PFS) on the project is underpinned by a 3.2-billion-tonne resource and an operating cost of $27.2/t of concentrate, averaging earnings of $312-million every year over the initial 20-year mine life.

The project’s inferred mineral resource so far total 1.3-billion tonnes of ferric oxide grading 10.44%, titanium oxide grading 1.05% and vanadium pentoxide grading 0.05%.

The PFS also finds the project has a net present value after tax of $1.26-billion and an internal rate of return of 39% based on an initial investment of $602-million.

“We estimate the project could contribute iron-ore export earnings of NZ$658-million a year and vanadium pentoxide export earnings of NZ$196-million a year,” the company states.

The PFS and EIA will now support the project’s permitting applications and process towards development.

Once the project becomes operational, Manuka and its subsidiary plan to produce 4.9-million tonnes of iron-ore concentrate every year, which will be processed aboard integrated mining vessels, before being transferred to floating storage and offloading vessels for transhipment – where it will be dewatered and stored before transferring to bulk carrier vessels for shipping to overseas markets.

While the company is seeking a 35-year permit for the project, the actual harvesting activity of iron-ore will take place over 20 years once the project starts to operate.

The PFS assumes a long-term average iron-ore price of $90/t; however, the average price was $111/t in 2024.

The primary product produced will be iron-ore concentrate and some vanadium pentoxide – with the PFS assuming an average vanadium pentoxide price of $5.45/lb.

Manuka says there is upside potential for titanium oxide sales.