Name of the Project
Mt Peake vanadium/titanium/iron project.

Location
Northern Territory, Australia.

Project Owner/s
TNG.

Project Description
As part of the ongoing front-end engineering design (FEED) process for its Mt Peake project, TNG has optimised its planned execution and delivery strategy for the project, delivering savings and reductions in upfront capital costs while maintaining robust economics.

Discussions have confirmed that simplifying the project towards a one-stage build while minimising capacity and capital expenditure is best suited to the targeted debt/equity structure for the project.

The Mt Peake mine site will involve mining the titanomagnetite ore and recovering the magnetite in a concentrate through a beneficiation process.

The company and its advisers have selected a development strategy based on an initial production rate of two-million tonnes a year of ore throughput at the beneficiation plant, corresponding to 100 000 t/y of titanium oxide pigment through the proposed TIVAN processing plant. At a later date, after the financial completion of construction and operation of the two-million-tonne-a-year plant, TNG may consider the option to expand production capacity.

Previous feasibility studies were conducted using three-million tonnes a year of run-of-mine (RoM) production capacity during an initial production stage and increasing capacity to six-million tonnes a year of RoM by expanding the plant after four years of production.

Under the new mining schedule, the life-of-mine (LoM) has been extended to 37 years, from the previously planned 20-year LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated pretax net present value, at an 8% discount rate, is estimated at A$2.8-billion, with an internal rate of return of 33% and a payback of 2.8 years.

Capital Expenditure
Preproduction capital expenditure is estimated at A$824-million.

Planned Start/End Date
Not stated.

Latest Developments
The environmental-impact statement (EIS) for the processing facility of the Mt Peake project is facing a potential delay.

The Northern Territory Environmental Protection Authority has asked TNG to provide additional information on the supplement to the draft EIS for the Tivan processing facility.

The company has to address 23 matters, based on submissions from the Northern Territory government agencies and the Environment Centre, many of which are new and were not previously required or raised at the draft EIS stage.

TNG says this a “significant” amount of additional work and that the timeframe required to complete the work will be established in the coming weeks. Some of the work will require seasonally dependent biological surveys and significant new air-quality modelling.

“Our team is working to evaluate all options to ensure that we achieve an expeditious final permitting resolution in a timeframe that matches the stage of development of the Mt Peake project, for which the FEED study is being finalised in preparation for project financing discussions,” MD and CEO Paul Burton has said.

The federal government granted Mt Peake major project status in March 2021. 

Key Contracts, Suppliers and Consultants
Snowden Mining Industry Consultants (revised mining strategy); Como Engineering (beneficiation plant – recoveries, operating expenditure and capital expenditure); McMahon Services (infrastructure – operating and capital expenditures); SMS (process plant flowsheets); and METS Engineering (process plant construction and operating expenditure).

Contact Details for Project Information
TNG, tel +61 8 9327 0900 or email corporate@tngltd.com.au.