Junior Andromeda Metals has marked the final hurdle in the development of its Great White kaolin project, after receiving approval from the South Australian Department for Energy and Mining (DEM) for its programme for environment protection and rehabilitation (PEPR).
The PEPR is the second and final stage of the state government’s regulatory process, and allows for the processing of up to 300 000 t/y of ore, producing up to 150 000 t/y of halloysite-kaolin product.
The PEPR authorises the staged development of Andromeda’s planned operations and anticipated production during the first 13 years of the mine’s expected 28-year mine life.
“We are very excited to have received approval of the PEPR as it brings Andromeda closer to becoming a globally significant producer of halloysite-kaolin products,” Andromeda MD James Marsh said in a statement on Thursday.
“With this important regulatory milestone now achieved, Andromeda is poised to progress towards construction, as we advance funding discussions which will enable a final investment decision.
“We are pleased to have satisfied the comprehensive environmental conditions required by DEM and look forward to building on the strong relationships we have developed with the local Eyre Peninsula community and delivering long- term benefits to our shareholders and the region.”
A 2022 definitive feasibility study estimated that the project would require an initial capital investment of A$93.8-million, with payback expected in just shy of six years. The Stage 1 operation would have a 300 000 t/y capacity between years one and five of the operation, ramping up to 600 000 t/y for the remainder of the project life.
The project is expected to generate revenues of $4.7-billion, and will have a net present value of A$613-million before tax and an internal rate of return of 36%.
Andromeda said that funding for the Stage 1 operation was currently under consideration and could include a range of debt and equity mix options to support project financing, while also providing flexibility to pursue growth opportunities as they develop.
Early-stage preparation for the Stage 1 construction is expected to proceed over the coming months.
The Association of Mining and Exploration Companies on Friday welcomed the South Australian government’s approval of the Great White project, with CEO Warren Pearce saying it was welcome news for the region’s development of the critical minerals sector.
“Following extensive stakeholder engagement, best-practice consultation and comprehensive environmental studies this approval demonstrates government’s confidence the company can comply with regulatory conditions set under the 2021-introduced mining legislation reforms,” Pearce said.
“In order to reach the state and Commonwealth’s decarbonisation targets, more critical minerals mines are needed, and more investment into projects across South Australia is required to spur project development.
“Mining projects such as the Great White project are an excellent example of the natural mineral wealth within South Australia, and the innovation explorers and miners are employing to safely extract these materials,” he added.
