TNG Ltd (ASX: TNG) has secured a $3.7 million research and development tax rebate as it rapidly advances its wholly-owned Mount Peake vanadium-titanium-iron operation for global markets.
The rebate comes under the Australian Government’s tax incentive scheme for any eligible research and development activities relating to TNG’s proprietary TIVAN processing technology.
TNG is advancing an integrated mining, processing and refining operation for its Mount Peake project to produce high-value and high-purity vanadium pentoxide, titanium dioxide and iron oxide materials using its patented TIVAN technology.
The tax rebate adds to the company’s cash position which was $14 million at the end of the March quarter.
March quarter milestones
Today’s news follows a busy March quarter advancing Mount Peake, which TNG says is a world-scale critical and battery minerals deposit.
The project is 235km north-west of Alice Springs in the Northern Territory and close to existing key power and transport infrastructure.
Mount Peake has a shallow flat-lying orebody with a resource of 160Mt at 0.28% vanadium, 5.3% titanium, and 23% iron, which is enough to support at least 40-year operation.
TNG says Mount Peake is one of the world’s largest undeveloped vanadium-titanium-iron projects and it has secured major project status from both the federal and Northern Territory governments.
During the March quarter, TNG inked an agreement with SMS Group regarding a revised project execution strategy, which takes into account the global challenges with supply chain management, logistics and cost inflation.
The revised strategy paves the way for SMS to provide a commercial and technical proposal for engineering and procurement of the TIVAN processing facility at the Mount Peake mine site.
Under the agreement, TNG will have the flexibility to appoint Australian-based engineering and construction companies to deliver the mine site beneficiation plant, the titanium pigment facility and non-process infrastructure.
Meanwhile, contractor Clough progressed design and value engineering works for the proposed mining and processing operation at the Mount Peake mine site.
This comprises the beneficiation plant, the TIVAN processing facility (including the titanium dioxide plant) and utilities.
Alternative energy advancements and other workstreams
In parallel, TNG expects to complete a number of environmental studies, which will be included in a revised environmental impact report which will be submitted to the Northern Territory Environmental Protection Authority for approval in the September quarter.
Funding negotiations are underway, with TNG’s mandated debt advisor KfW IPEX-Bank reaffirming its commitment to progressing the financing process for Mount Peake.
TNG is also evaluating alternative energies for commercialisation and to power Mount Peake.
A commercial study has advanced in collaboration with Malaysia-based AGV Energy and Technology for the HySustain green hydrogen project in Darwin.
A site has been reserved in Darwin Port’s Middle Arm for the project.
Evaluation of a potential facility to produce high-purity vanadium electrolyte for vanadium redox flow batteries (VRFBs) was completed during the March quarter.
Following the successful completion of the study, TNG is looking at using VRFB to power Mount Peake.
Market outlook for proposed products
As Mount Peake is progressed to development, TNG pointed out the outlook and pricing for its key products “continues to be strong” amid fears of global supply shortages.
Additionally, the Australian Government has designated vanadium and titanium as critical minerals in the global transition to decarbonisation.