Urquhart still on the radar
PERTH (miningweekly.com) – An updated prefeasibility study (PFS) into the Urquhart bauxite project, in Queensland, has confirmed the low capital cost requirements for the project development.
The PFS estimated that a capital injection of A$2.2-million would be required to develop Urquhart to produce some 1.5-million tonnes a year of ore, producing 6 532 t/y of saleable product over a five-and-a-half-year mine life.
ASX-listed Metallica Minerals on Wednesday said that the PFS estimated a net present value of A$47.3-million on sales of 6.5-million tonnes of the project’s proven and probable reserves, with revenues estimated at A$389-million and earnings before interest, taxes, depreciation and amortisation at A$68.8-million.
“We remain confident that Urquhart bauxite will deliver value for shareholders and continues to display attractive returns despite shipping costs increasing by over $5/t,” said Metallica MD Simon Slesarewich.
“Utilising contractors to deliver the mining and having access to the nearby and operational Hey Point barge loading and transshipping facility will translate into a development that is low in capital intensity and can be brought into production rapidly.”
Slesarewich said that previous marketing work by the company and its marketing agent has ensured that the well-known bauxite product produced at Urquhart will be readily received by Chinese refiners.
Metallica has meanwhile said that it would finalise negotiations for a binding agreement over the grant of access to build a build a haul road connecting Urquhart to the barge load facilities at Hey Point.
Following the granting of the mining lease in January, the company has escalated the current haul road impasse to the highest level of the Queensland government, and government officials have increased their efforts and are negotiating with all parties directly.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation