Titanium Sands is another step closer towards its goal of securing a mining licence for the Mannar mineral sands project. Pic: via Getty Images.
Mining
Titanium Sands is drawing closer to securing the mining licence for its Mannar mineral sands development with a key document formally submitted to Sri Lanka’s Central Environmental Authority for clearance.
The advanced Mannar project boasts a substantial resource of 318Mt grading 4.17% total heavy minerals with ilmenite – the main source of titanium dioxide globally – making up the bulk of the mineralisation.
Just under half of this resource – 145.7Mt at 4.228% THM is contained within the higher confidence indicated category.
Ilmenite is the most important feedstock in the production of titanium dioxide (TIO2), used in products people use daily such as paints, fabrics, plastics and paper, sunscreen, food and cosmetics.
The project on Sri Lanka’s Mannar Island also benefits from ready access to road infrastructure, rail infrastructure, access to water and power, and close proximity to the port of Trincomalee.
Importantly for Titanium Sands (ASX:TSL), the scoping study for the Stage 1 dredge mining operation has outlined very attractive returns.
This includes high net present value and internal rate of return – both measures of a project’s profitability – of $545m and 52% respectively from gross revenue of $2.01bn.
Capex is also a very palatable $122m with payback in just under two years while the revenue to operating cost ratio of 2.75 is highly competitive with other ilmenite feedstock producers globally.
Stage 1 will extract mineral sands from an 8km by 1km high grade zone with a resource of 82Mt at 6.03% THM that is exposed at surface with no barren overburden.
There are also opportunities for up to two further expansion stages at Mannar, which will be Sri Lanka’s first independent mineral sands project to export in bulk from the country.
The process of securing the mining licence required to start development is progressing as anticipated with company confirming that the Basic Information Questionnaire has been formally presented to the CEA.
The CEA clearance forms part of the Environmental Impact Assessment, which when successfully completed will lead to the issue of a mining license(s) for Mannar.
A formal site visit to Mannar Island has also been undertaken by the CEA in conjunction with the EIA consultants and the company’s Sri Lankan team.
Titanium Sands adds that the terms of reference letter from the CEA is forthcoming that will outline the balance of factors to be addressed in order to complete the EIA.
This article was developed in collaboration with Titanium Sands, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
