PROJECT FINANCE

TNG offered more financial firepower for Mount Peake

German export credit agency the latest to support Top End vanadium-titanium-iron mine

 TNG says its funding chase is on the right track

TNG says its funding chase is on the right track

Euler Hermes, which has previously offered funding support to Kalium Lakes' troubled Beyondie potash project and Hastings Technology Metal's proposed Yangibana rare earth development, both in Western Australia, is now looking to the Northern Territory.
 
It has issued a letter of interest to provide A$300 million in finance for TNG's flagship Mount Peake vanadium-titanium-iron project. 
 
TNG now says it has had firm expressions of funding interest from seven government agencies and banks, most recently a non-binding letter of support from the Australia's government's ECA, Export Finance Australia, for up to $300 million in debt funding.
 
Managing director Paul Burton, who has guided the company as it has pursued the development for more than a decade, said the support from major global financiers highlighted Mount Peake's bankability.
 
It now has some $600 million in government funding on the table, and it is still working with Germany's KfW IPEX Bank on a circa $600 million commercial debt funding strategy, while it continues to chase a mix of alternative funding sources.
 
Burton said green loans were also an option given TNG's green energy strategy, and vanadium's emerging role as a battery metal.
 
Burton said Euler Hermes had been attracted to the project based on the procurement of process equipment from TNG's long-standing strategic engineering partner, Germany's SMS Group. 
 
He remains hopeful that with so much interest, TNG will be able to optimise its debt financing, providing greater access to low-cost lending and offering greater flexibility in loan structuring.
 
The project has a current build cost of around $850 million, however its local engineering contract, Clough, is preparing a revised figure. 
 
Mount Peake is described by TNG as "one of the largest undeveloped vanadium-titanium-iron projects in the world", with the shallow deposit having resources of 160 million tonnes grading 0.28% vanadium, 5.3% titanium and 23% from.
 
The mine, to be located 235km north-west of Alice Springs is expected to produce 100,000 tonnes per annum of titanium dioxide pigment, 6000tpa of vanadium and 500,000t of iron fines over almost 40 years. 
 
Life-of-mine offtake agreements for 100% of production have been signed in recent years.
 
A final investment decision is being targeted for later this year. 
 
The stock has traded between 4.6c and 14.5c over the past year, and was up 10% today at 7.5c, valuing it at $104 million.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.