TNG to invest $1.7 billion and create 300 jobs through new Territory mine

ONE of the Territory’s most promising mining projects looks certain to materialise, with the promise of more than $1.7 billion in investment and more than 300 jobs.

Generic of earth-moving vehicle in an open cut gold mine.

ONE of the Territory’s most promising mining projects looks certain to materialise, with the promise of more than $1.7 billion in investment and more than 300 jobs in coming years.

Perth-based mining company TNG released the feasibility study into its Mt Peake vanadium and titanium operation, 235km northwest of Alice Springs, describing it as a “world-class project”.

Managing director Paul Burton said that as part of the project, the company planned to build a $650 million refinery at Middle Arm.

“We had looked at Malaysia due to the level of subsidies on offer, but the decision was to build it in Darwin,” he said.

“We just think it’s best to keep everything in the same country.”

That decision has drawn praise from Mines and Energy Minister Dave Tollner.

“(The) decision to construct the facility near the Port of Darwin is a big vote of confidence in the Territory economy,” Mr Tollner said.

“Investment in this project will top $1.7 billion and create hundreds of jobs in Central Australia and the Top End.”

The mine has an expected 17-year operating life, with the refinery forecast to operate for 40 years.

The company will build a railway spur line to its mine site, and transport the partially processed product more than 1200km by rail for refining and export.

The end products for the vanadium and titanium oxide include hi-tech batteries, white paint and sunscreen.

“There’s the potential for a huge, growing market in vanadium,” Mr Burton said.

Vanadium redox batteries are of particular benefit to the renewable energy sector.

Once the construction phase is complete and production starts in 2018, the company expects to employ 170 workers, according to a statement released by the Australian Securities Exchange late Friday.

The company will invest nearly $800 million more after 2020, doubling the output of the refinery and mine.

Mr Burton said the next step for the project was to secure funding from the company’s European, Korean and Chinese backers.

Those investors are expected to see a return on their investment within four years.