Page 47 - pd284-July20-mag-web_Neat

ed with a nearly 30% uplift in our NPV Strandline from making a final invest-
[$705 million] of the project just over the ment decision.
22.5-year case of ore reserves. The DFS It was widely thought the January
alluded to an extension case of another settlement between the Tanzania Gov-
15-38 years. It is a generational project, it ernment and Barrick Gold Corp/Acacia
is massive to be presenting that to market would unlock a new wave of projects in
while we are going through financing get- the East African country.
ting ready for FEED,” he said. “It is frustratingly taking longer than
The DFS metrics served as a reminder everyone expected but we are getting
to the Commonwealth Government of the there, and we will get there. Once we get
scale and potential of Coburn, which re- an agreement that defines that 16% free-
ceived support through the Northern Aus- carried interest then we’ll quickly move to
tralia Infrastructure Facility via a loan of a development decision. We will be in a
up to $150 million over a 15.5-year term position to make that call. The fact that
in two tranches. we have this optionality in the portfolio is
NAIF accounts for a major share of Co- Luke Graham fantastic,” Graham said.
burn’s capital requirement and will assist In the meantime, tapering demand and
in enabling the remaining funding. The “That is locked away, there are condi- supply disruptions is the cause of de-
NAIF facility is expected to stand along- tions precedent before that first drawdown pressed mineral sands markets, howev-
side a commercial debt tranche. and one of them in particular is getting er, the long-term outlook appears more
In addition to the positive outcome with closure on the Government’s 16% free- positive.
the Australian Government, Strandline is carried interest in the project, which was “For us it is about navigating through
also expecting to hear from the Tanzanian part of the new mining reform,” Graham the COVID recovery; demand has come
Government on what part it will play in the said. off 15-25% but supply has been disrupt-
$US35 million Fungoni project. In addition to the facility with Nedbank, ed as well, so we’ll see where it all ends
A DFS has been completed on Fungoni take-or-pay offtake agreements for 100% up. Supply has been coming off 5% year-
and after working closely for 18 months, of forecast production are in place and on-year due to mines closing, depleting
Nedbank CIB committed to a finance fa- key construction contracts have been grades and orebodies, so new projects
cility agreement to underwrite a $US26 signed. will be needed,” Graham said.
million debt facility, subject to conditions Therefore, the pause from the Govern-
precedent outlined in April. ment on its stance at Fungoni has slowed – Mark Andrews

HIRE POWER

WHEN YOU

NEED, GENERATORS

WHERE YOU

NEED. AIR COMPRESSORS

Wide Range of Equipment Remote Monitoring
Rapid Deployment Full Turnkey Solution

Emergency, temporary and short term hire. TEMPERATURE CONTROL

ONE NETWORK. ©2020 Caterpillar ® . All rights reserved. CAT ® ,
CATERPILLAR ® , LET’S DO THE WORK, their respective
ONE CALL 1800 800 441 logos, “Caterpillar Yellow,” the “Power Edge” trade
dress as well as corporate and product identity used
energypower.com.au herein, are trademarks of Caterpillar and may not be
used without permission.

aUSTRaLIa’S PaYDIRT JULY 2020 Page 47