Name of the Project
Taranaki vanadiferous titanomagnetite (VTM) project.

Location
Offshore along the west coast of the North Island of New Zealand, in the South Taranaki Bight.

Project Owner/s
Australian mining and exploration company Manuka Resources subsidiary Trans-Tasman Resources.

Project Description
Taranaki is a large iron sands deposit with mineral resources of 3.2-billion tonnes.

The project prefeasibility study (PFS) proposes the mining of iron sands from the shallow seabed floor within exploration permit MMP55581 through an underwater seabed crawler at 50-million tonnes a year over an initial 20-year mine life.

MMP55581 has mineral resources of 1.9-billion tonnes grading 9.99% ferric oxide, titanium dioxide (TiO₂) and vanadium pentoxide (V₂O₅). The crawler will pump sediment as seawater slurry to a surface vessel where the sand will undergo beneficiation into a saleable VTM concentrate with an iron grade of about 57% (iron), 0.50% VV₂O₅ and titanium of 8.4% TiO₂.

The project is scheduled to produce VTM concentrate at 4.9-million tonnes a year. The balance of the mined sand, about 45-million tonnes a year, will be returned continuously to the seabed floor behind the surface vessel, where it will be restored to its natural state within two years.

Potential Job Creation
The project is expected to create an estimated 1 365 new high-value jobs across the economy.

The project operations will directly create a total of 303 new full-time equivalent jobs across the Taranaki region and Whanganui district, with yearly direct expenditure of NZ$238-million on a range of industries within New Zealand.

Net Present Value/Internal Rate of Return
The PFS estimates a net present value, at a 10% discount rate, of $1.26-billion and an internal rate of return of 39%.

Capital Expenditure
$602-million.

Planned Start/End Date
Not stated.

Latest Developments
Subject to completion of the regulatory approval processes, Manuka intends to progress into definitive bankable feasibility study workstreams, which consist largely of detailed vessel engineering, and the development of procurement and funding strategies.

Key Contracts, Suppliers and Consultants
Not disclosed.

Contact Details for Project Information
Manuka Resources, tel +61 2 7253 2020 or email admin@manukaresources.com.au.