Old pit back in mining business

AUSTRALIA’S only primary producer of a critical mineral used in aerospace, construction and technology is ramping up production in North Queensland.

ASX-listed EQ Resources, backed by German metals trading group Cronimet, is expanding the old Mt Carbine mine, 130km northwest of Cairns, to export tungsten concentrate from Townsville port.

The company has released a bankable feasibility study showing it will take a phased approach to its development by starting production of lowgrade stockpile material and restarting the open-pit mine before developing a large underground mine.

EQ Resources chief executive Kevin MacNeill said the approach was about keeping capital spending low while ramping up production to provide early cashflow.

“We wanted to get into production as quickly as we can,” Mr MacNeill said.

The mine is already producing about 300 tonnes a year of tungsten concentrate and employs 50 people, but is looking to boost that production early next year to 60 to 90 tonnes a month.

Mr MacNeill said the company would likely call for another round of 10 to 20 employees next month.

He said the installation of a new transformer and power line, which was due to be switched on this week, would allow the mine to operate its crusher and sorter machines 24/7. The bankable feasibility study sets out a 12-year operation focusing on production of material from the existing Andy White Open Pit, supplemented with stockpiled ore.

Mr MacNeill said the study was s aimed at de-risking the mining and processing of the stockpiled and open pit ore.

Mt Carbine was mined in the 1970s but has been closed since about 1985.