Name of the Project
Toliara mineral sands project.

Location
South-west Madagascar.

Project Owner/s
Base Toliara, a subsidiary of Base Resources.

Project Description
The outcomes of the definitive feasibility study on the Toliara project have closely aligned with the March 2019 feasibility study.

The project is based on the Ranobe deposit, which has total estimated ore reserves of 586-million tonnes at 6.5% heavy minerals and 3.9% slag ilmenite. Based on these reserves, Toliara is expected to deliver an average of 780 000 t/y of ilmenite, 53 000 t/y of zircon and a further 7 000 t/y of rutile over the initial 33-year mine life.

The project will be implemented in two stages.

Stage 1 will include the engineering, procurement, construction and commissioning (EPCC) of heavy mining equipment; a dozer mining unit; a 1 750 t/h wet concentrator plant; a 150 t/h mineral separation plant; field services; a power generation facility; a borefield; a camp, offices, laboratories and workshops; a haul/access road and bridge; an export facility storage shed, a workshop and offices; and a jetty, multibuoy mooring facility and shiploader.

Stage 2, which will start four years after initial production, will include the EPCC of an identical second dozer mining unit, a second wet concentrator plant with a capacity of 825 t/h, additional heavy mining equipment, upgrading the power plant capacity by 30%, adding two boreholes to the borefield and adding one 18-room dormitory to the camp.

Potential Job Creation
The project is expected to create an estimated 754 unskilled, semiskilled, skilled professional, supervisory, superintendent and managerial positions. This excludes the estimated 226 contractors.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $652-million and an internal rate of return of 21.4%, with a capital payback for stages 1 and 2 at 4.25 years.

Capital Expenditure
Stage 1 capital expenditure (capex) is estimated at $442-million for a 13-million-tonne-a-year processing operation. Stage 2 capex, estimated at $69-million, will increase capacity to 19-million tonnes a year.

Planned Start/End Date
Subject to a positive final investment decision in September next year, construction of Toliara is expected to take about 26 months to complete, with first shipments targeted for the end of 2023.

Latest Developments
Base Resources is not expecting a final investment decision (FID) on its Toliara project before September 2021.

Speaking at the Africa Downunder Conference, in Perth, Base MD Tim Carstens has said there was little clarity on the timing of the FID, given the current Covid-19 pandemic and the global travel restrictions.

The Madagascar government suspended activities at Toliara in November 2019, as negotiations around the fiscal terms applicable to the project were initiated.

The company has said that it is making "good headway" in the discussions with the Madagascar government, and that it is "optimistic" about its progress.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Base Toliara, tel +261 020 24 261 85 or email reception@toliarasands.com.