TNG Limited (ASX: TNG) announced that the Australian Federal Government has awarded Federal Major Project Status to TNG’s Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory.
TNG said that Federal Major Project Status recognises the national significance of Mount Peake for the Australian economy as it grows and diversifies the nation’s critical minerals industry. It may be noted that the Mount Peake Project also has Major Project Status from the Northern Territory Government.
The company said that the Mount Peake project is a world-class strategic metals asset that is expected to deliver significant new infrastructure for the Northern Territory. This includes a mining operation and Beneficiation Plant north of Alice Springs and a TIVAN® Processing Facility to be located at the Middle Arm Precinct in Darwin.
TNG said that the project is forecast a production of 100ktpa of titanium pigment, 6ktpa of vanadium pentoxide, and 500ktpa of iron oxide.
The company reported that its Front-end engineering and design (FEED) study is currently nearing completion. TNG said that significant green energy component is planned with VRFBs and Hydrogen production.
Mount Peake project
TNG’s Mount Peake Project is a world-scale strategic metals asset that is intended to be developed across two separate sites in the Northern Territory with a mine and processing facility life of 37 years, and an initial significant capital investment and jobs creation to deliver the Project.
The company said that the project is expected to create up to an estimated 1,600 jobs during construction and up to an estimated 1,000 long-term jobs during operations.
Significant new infrastructure for NT
The company said that the project is expected to deliver substantial new infrastructure in the Northern Territory including a mining operation, Beneficiation Plant, and TNG’s proprietary TIVAN® Processing Facility.
TNG noted that the TIVAN® Processing Facility is proposed to be located at the Middle Arm Precinct in Darwin, which has recently been recognised as a nationally-significant investment priority area by Infrastructure Australia.
TNG said that the project is also anticipated to support non-processing infrastructure additions and upgrades, including haul roads, logistics infrastructure, utilities infrastructure, and office/camp facilities.
Production targets
The Company reported that it is targeting annual production of 100,000 tonnes of titanium pigment (the base material for outdoor paints and coating), 6,000 tonnes of vanadium pentoxide (for use in steel strengthening and alloys and VRFBs), and 500,000 tonnes of iron oxide (for use in steel production), making this a world class multi-commodity resource with in country value adding.
Latest updates
The company announced that it is currently nearing the completion of a Front-end engineering and design (FEED) study with the leading German-based engineering firm SMS group to provide confirmation of the final capital expenditure required for the Beneficiation Plant and the TIVAN® Processing Facility which will then lead to an Engineering Procurement Construction (“EPC”) proposal for delivery.
Green energy strategy
TNG said that in parallel with the FEED study and as part of the Company’s vertical integration strategy for the Mount Peake Project, the company is also advancing its green energy strategy with the establishment of a VRFB business unit and a joint partnership with SMS group to develop a carbon-neutral hydrogen production technology to be applied to the TIVAN® process.
Management comments
TNG’s Managing Director & CEO Paul Burton, said: “Mount Peake is a world-class project which is set to deliver critical minerals required for the growing demand from the renewable energy sectors from Australia to global markets for many decades to come. The award of Major Project Status by the Australian Federal Government is a testament to the substantial economic and social benefits expected to be delivered by the Project and its potential strategic significance to the Northern Territory and Australia in expanding and diversifying our critical minerals industry.
Securing the support and involvement of the Australian Government in helping to facilitate the development of a global scale critical minerals project like Mount Peake is significant for TNG and its shareholders. It will assist in ensuring certainty of process for the remaining permitting and approvals required both for the Mount Peake mine site and the Darwin TIVAN® Processing Facility and represents an important endorsement of the Project as we embark on the next stages of project financing.
Additionally, TNG and the Mount Peake Project is well positioned to contribute to the growing demand for sustainable green energy through TNG’s newly established VRFB business unit and its strategic partnership with SMS group to develop a CO2-neutral technology for green hydrogen production.”