PERTH (miningweekly.com) – Tungsten miner Hazelwood Resources is initiating a four-part change management plan aimed at driving down cost and providing a pipeline of further growth opportunities.
Executive chairperson Mark Warren said in a letter to shareholders on Thursday that the first focus would be on improving the operational efficiency and profitability of the ATC ferrotungsten project, in Vietnam.
Warren pointed out that the technical ramp-up and performance of the plant in its 18 months of operation had proven that the project could produce consistently high-quality ferrotungsten from a range of variable feedstock. However, he noted that the company’s focus would now be on improving profitability at the plant through lower cost operations, and improved operating flexibility for the changing market conditions.
Meanwhile, Hazelwood would also investigate additional add-on business unit opportunities around its Vietnamese manufacturing base.
“These opportunities may see us expand our offering of complementary tungsten products to our client base and cement our position as a significant global manufacturer in the international tungsten industry,” Warren added.
He noted that preliminary investigations have shown the potential to significantly improve profitability and diversity in the revenue stream through synergies offered by some of the business opportunities available.
As its third focus area, Hazelwood would accelerate the study of its upstream Australian tungsten projects at Mt Mulgine and Big Hill, in Western Australia, to a decision point on their development.
“With further resource upgrades expected soon from the Mt Mulgine project, we expect this large-scale project to provide the best opportunity to be developed as a low-cost tungsten mine and concentrator, due to the tungsten resource being close to surface with increasing grade at depth, in addition to being in a location that has good proximity to services.”
Warren said that a tight budget control and timeline for the study of these resources was essential, adding that Hazelwood would explore different delivery models, including joint venture partners, to develop the project.
As its final focus, Hazelwood would also look to strengthen its management team, Warren said.