AS part of the ongoing definitive feasibility study (DFS) for TNG Limited’s flagship Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory of Australia, an independent review has been conducted to assess the potential to locate the downstream TIVAN® hydrometallurgical processing plant in Malaysia. The review provides strong momentum for TNG to progress the evaluation of a Malaysian-based processing plant.
The review, carried out at Aus$1:US$1 exchange rate demonstrates an enhancement to the current view of the pre-tax financial outcomes outlined in the July 2012 Mount Peake pre-feasibility study, and updated in the February 2013 technical review.
In addition, the Malaysian Government may provide certain incentives to attract chemical processes to the region, such as potential for multi-year tax free allowances and cost-effective power and water agreements. These potential incentives have not been factored into TNG’s financial model.
Based on the strength of the financial outcomes provided by Snowden Mining Industry Consultants in the review, TNG has engaged environmental consultancy ENVIRON Consulting Services in Malaysia to provide technical and scientific support, to facilitate meetings with the Malaysian Government departments, particularly the Malaysian Industrial Development Authority (MIDA) and for the land selection process.
ENVIRON has successfully completed projects in more than 100 countries and has an international reputation for providing high-quality consulting and technical services. Their Malaysian office is ideally suited to assist TNG with its proposed development.
Malaysia’s east coast hosts large-scale chemical and heavy industry, with a number of associated industries along this regional corridor, including steel mills, titanium dioxide processing, acid production and oil refining. Large deep water ports are also available.
The close proximity of these industries to the proposed TIVAN plant location would provide immediate benefits, as TIVAN will require proximity to acid availability, water and cost effective power. The proximity to associated industries such as steel mills and titanium processing also provides the potential for product sales at the process plant gate.
TNG’s managing director Paul Burton says the study indicates that locating the TIVAN plant in Malaysia could deliver some compelling advantages. “A degree of uncertainty exists regarding long-term competitive gas pricing in the Northern Territory, so we believed it would be prudent for TNG to look at all options, including an offshore location for the TIVAN plant.”
“This study indicates that a Malaysian or other offshore location could deliver some important benefits for the economics of the Mount Peake mining operation and we will now investigate this potential further as part of the DFS. This alternative reinforces that Mount Peake is an outstanding growth asset for TNG shareholders, and we are pressing ahead with discussions with key strategic and offtake partners to finalize a suitable funding and development framework.”