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- TNG (TNG) pushes forward with original plan for TIVAN processing facility at the Mount Peake mine site in the Northern Territory
- Following a detailed review of alternative sites and overcoming issues of gas and water limitations, TNG will progress with an integrated facility
- Discussions are reportedly underway on an enhanced project and the company hopes to move ahead with permitting quickly
- The company had been progressing work at the Middle Arm Precinct in Darwin to secure site tenure and environmental approvals
- Shares have been trading 5.06 per cent higher at 8.3 cents at 1:17 pm AEST
TNG (TNG) is progressing with development of a processing facility at its Mount Peake vanadium-titanium-iron mine site in the Northern Territory.
TNG has resolved to progress with the preferred alternative site for the facility as an integrated and consolidated, single mining and processing operation within its existing mining leases at the mine site.
On August 31, the company announced it had completed a re-assessment of alternative locations for the TIVAN Processing Facility at the request of the Northern Territory Environment Protection Authority.
An integrated mine-beneficiation-processing facility was originally contemplated at the Mount Peake Mine site in the company’s initial project scoping study. However limits to gas and water availability meant it wouldn’t meet the project’s requirements.
A number of other sites were considered and the Northern Territory Government provided a site in the Middle Arm Precinct in Darwin, which was reserved for the company in 2015.
Since then, TNG had been progressing environmental approvals and the terms to secure site tenure with the successive NT governments.
However, the company seemingly overcame the obstacles pertaining to water at the preferred site during the Front-End Engineering and Design study undertaken by SMS group, deciding to incorporate a wastewater recycling facility to materially reduce its water requirement for processing.
Additionally, a gas expert reportedly established that there was expected to be sufficient gas at the site using the existing Darwin-to-Alice Springs gas pipeline.
As part of the review and re-evaluation, TNG also completed an updated site assessment of the project, and noted a higher level of uncertainty in relation to securing regulatory approvals and permitting for the Darwin site.
Conversely, the company’s mining lease for the mine site already allowed for mineral processing activities and the area is said to be sufficient to accommodate a fully integrated operation.
Following the detailed review, TNG has reverted back to the original plan of an integrated and consolidated processing facility to be evaluated at the Mount Peake mine site.
The company has identified a number of other benefits expected from the integrated project, including a decrease in construction requirements as it’s reportedly located in a non-cyclonic zone with superior geotechnical conditions.
A simplified commissioning process and take-or-pay arrangements for gas and power are also anticipated.
The company expects to undertake and complete all workstreams for the integration at the mine site within the next 12 months.
The Northern Territory Minister for Mining and Industry Nicole Manison said the Labor Government supported the development of the project, which it believes is going to be “great” for local jobs, local businesses and the economy.
“Products using vanadium, titanium and iron are globally in great demand and this project will see the Territory capturing more value from these resources, which will create jobs for Territorians and boost economic opportunities for all of Australia.”
TNG said it had briefed its project financiers and advisors, who have reportedly indicated their continued support.
Discussions have also commenced with the Central Land Council on an enhanced project at the mine site, and with the State Government and EPA to progress final permitting and approvals.
Managing Director and CEO Paul Burton said the decision to progress development of the Mount Peake Project with a consolidated and integrated processing facility at the mine site was a significant milestone for the company, and a significant development for shareholders and stakeholders.
“This is the most important change to the configuration of the Mount Peake Project since the completion of the Feasibility Study and, importantly, it gives certainty to all of our key stakeholders, our project financiers, our shareholders and everyone else who has followed our journey to date.
“The co-location of the TPF at the mine site delivers a host of strategic and logistical benefits and, importantly, significantly de-risks our development pathway moving forward.”
Shares have been trading 5.06 per cent higher at 8.3 cents at 1:17 pm AEST.
