Northern Territory tungsten mine given major project status

THOR Mining Company’s flagship Molyhil tungsten and molybdenum project in Central Australia has joined the list of Territory Government major status projects

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Thor Mining Company’s flagship Molyhil tungsten and molybdenum project in Central Australia has joined the list of Territory Government major status projects.

Chief Minister Michael Gunner said the project would be a jobs jackpot.

Thor’s executive chairman Mr Mick Billing said the development ready, open pit mine, 220km north east of Alice is still subject to finance.

“What this decision does is send a strong signal to those we are talking to in regards to investment and joint ventures in this project, that it’s got pretty strong support from the Northern Territory Government,” he said.

“We have most of the approvals we need.

“While the government is not putting any money into this it is a significant milestone to received major status recognition from the Territory Government.

“Some of the players we are talking to about investing in the project in Asia will certainly sit up and take a lot of notice about the NT Government’s belief in the mine.

“In general it is a very positive step.

“We expect Molyhil to generate tangible and meaningful benefits to the Northern Territory, with export income and job creation in the Alice Springs area and the local communities near the project, as well as positive returns for the Company’s investors.”

Following the release of an upgraded open pit ore reserve in January 2018, an updated Definitive Feasibility Study (DFS) was completed in August 2018 with robust outcomes including a payback period of less than 18 months from first production, and very low operating costs.

The Company is now focused on the task of securing project finance to bring the project into production.

The DFS study confirmed that the project is technically and economically viable, has a seven year life, with strong financial returns and rapid capital payback.

It has an estimated capital expenditure of $69.3 million and is expected to create nearly 100 local jobs – 59 ongoing local jobs in Alice Springs over the seven year projected mine life, and a further 40 jobs during construction.

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The timeline of works includes: Final investment decision by the end of 2021

– Project construction and development during 2022

– Production commencing in the beginning of 2023