TNG progresses engineering and design stage of Mount Peake project
TNG has appointed UK-based director Elizabeth Henson to its board ahead of plans to list on the London Stock Exchange.
Mineral processing technology company TNG Limited (ASX: TNG) is continuing to advance engineering, development planning and commercial workstreams for its flagship 100% owned Mount Peake vanadium-titanium-iron project in the Northern Territory.
In a project update, the company said work led by Clough is progressing stage two of the design and value engineering for Mount Peake’s integrated mining and processing operation with completion expected by May 2022.
Another major contractor SMS Group is working to complete any outstanding validation test work that had been delayed last year due to COVID-19 restrictions.
Hydrogen reduction test work is also currently underway as a suitable replacement for the solid reductant in the current flowsheet. TNG said this will further reduce the carbon footprint of the Mount Peake project and put the company in a strong position to meet its zero emissions target by 2050.
Non-process infrastructure (NPI) requirements for the integration of the project at the mine site are also well advanced and potential build-own-operate and build-own-operate-transfer (BOO/BOOT) proponents are being targeted.
A water bore drilling program is scheduled to begin in early April to confirm additional water supply for the integrated mining operation, beneficiation plant and TIVAN processing facility.
Project execution model update
TNG said it has also progressed discussions with its major contractors, including SMS and Clough, to revise and update the project execution model. This includes a detailed review of the contracting strategy for delivery of both the processing plants and NPI, early contractor involvement strategies, BOO/BOOT planning and the project management structure.
In addition, the company is progressing multiple technical fronts to obtain the information required for the submission of a revised environmental impact report for the integrated project, following consultation with the Northern Territory Environmental Protection Authority (NT EPA).
Rising titanium and vanadium prices
Global demand for titanium dioxide and vanadium and pentoxide continues to be strong with market prices forecast to increase during the year, according to TNG.
The price of titanium dioxide has improved in all regions in the last 12 months, although increases were particularly significant in China (up 35.4%), the Asia Pacific region excluding China (up 27.6%), Europe (up 11.6%) and North America (up 11.5%0.
Price increases are expected to continue based on persistent constraints on feedstock.
The price of vanadium pentoxide (98% purity) in-warehouse Rotterdam has increased by 54.6% in the last 12 months, reaching US$10.85 per pound (A$15.24/lb) at the end of January 2022, while ferrovanadium (78% purity) rose 32.7% to US$39 per kilogram (A$55/kg) in the same period.