TNG to raise $850m for Mount Peake
TNG Limited has appointed a German company to raise $850 million for the development and construction of its Mount Peake project.
KfW IPEX-Bank would start a mandate for the funds on 15 January.
TNG managing director Paul Burton said the company was one of the leading export and project banks worldwide.
“We now look forward to working closely with KfW IPEX-Bank to progress the full financing package for the Mount Peake project expeditiously, with a view to achieving financial close as soon as possible and getting on with the job of constructing this major new Australian resource project,” Mr Burton said.
According to Mr Burton the decision followed extensive reviews and meetings in Europe and Singapore.
It came less than a month after the Northern Territory Government granted the company a mineral lease for Mount Peake, 235km north of Alice Springs.
The mine, granted major project status by the NT Government, had the potential to create up to 500 jobs during construction, and between 175 and 250 ongoing roles during operation.
Following the mineral lease being granted, Mr Burton said the company was rapidly ticking off the boxes towards the Mount Peake development, with key announcements over the past few months, including the signing of a Native Title Agreement.
“With these important milestones now complete, and subject to finance, this will now lead to a significant project going into production in the NT with long-term employment opportunities,” Mr Burton said.
Subject to further operational approvals, TNG aimed to begin construction in 2019 over a two year period, with an estimated mine life of 17 years.
The new mine would produce a vanadium, titanium and iron concentrate that TNG intended to transport by rail to a proposed new metals processing facility being planned for the Middle Arm Industrial Precinct in Darwin.
Subject to approvals, TNG expected construction of the refinery to begin in 2020.