TNG (TNG) has been advised by Clough Projects Australia that it’s still unable to provide an estimate on pre-production capital expenditure for the Mount Peake project.
The resource and mineral processing technology company appointed Clough as its lead engineer back in June to support the development of TNG’s vanadium-titanium-iron project.
Located in the Northern Territory, the Mount Peake Project is reportedly one of the largest undeveloped vanadium-titanium-iron projects in the world. It has also been awarded “major project” status by the NT and Australian Federal governments.
The company hopes to develop the project into a consolidated, fully integrated mining and processing operation to produce vanadium pentoxide, titanium dioxide and iron oxide for export using its TIVAN process.
In 2019, TNG released a pre-production capital expenditure estimate of $824 million, assuming that additional capex of $491 million for certain areas of equipment and plant would be funded by third parties.
Clough has previously told TNG that market conditions have “adversely impacted” its ability to progress updated equipment pricing and a capex estimate and the figures it has received so far are “significantly higher” than anticipated.
Clough believes however that the current pricing isn’t reflective of future market decisions which is why it can’t provide TNG with a definitive estimate for the Mount Peake project.
In response to the situation, Clough and TNG will work together to reduce and optimise equipment requirements through an engineering exercise and further commercial processing to minimise overall capital expenditure.
At this stage, the companies expect to complete the work by mid-2023 and once complete, TNG will be in a position to make a final investment decision.
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