Metals X hit by market conditions, start-up delays
Release date: 03 Nov 2008
itri.co.uk
Metals X’s plans to establish a major tin production base at the Renison project in Tasmania are running behind schedule, although the Mt Bischoff mine is reported to be working at full planned capacity. However the company’s plans to start by-product copper production and build a large tailings treatment unit may have to be put on hold as a result of unfavourable market conditions.
It its quarterly report for the three months to end-September, the company says that while Mt Bischoff (which supplies part of the feed to the Renison concentrator) is operating at 100% of planned capacity, the Renison mine’s productivity is only 75% of target, while the concentrator itself is running at about 80% of capacity. Actual production of saleable tin-in-concentrate in the three months was 192 tonnes, although a further 142 tonnes was contained in off-specification concentrate which will be re-treated.
In a statement Managing Director Peter Cook said: “The Renison Project is now moving through ramp-up to full capacity, which has been slower than anticipated, but is expected to be achieved midway through the December quarter. The project is now generating regular cash flow and at current prices is expected to improve to be a positive cash generator in the December Quarter.” The design capacity of the operation is some 9,000 tpy.
However the company said that the viability of a planned copper recovery circuit is under review, given the big fall in copper prices recently. More importantly, plans to start up a 5,000 tpy tailings treatment plan from 2010 may be stalled by the credit crunch and escalating capital costs: “Capital costs requirements to build the Rentails Project in its current configuration will be in the order of A$190 million. Although appearing as a robust project, with a good operating margin, this may be difficult to finance in the current credit markets. In light of this, Metals X is reviewing its completion strategy for the feasibility works. Further, Metals X may seek to partner the project as a funding mechanism, however no such arrangements have been made at the present time.” |
