MINEX Forum

Tag: tungsten mining

  • Allied Critical Metals Highlights Strong Cash Flow and Rapid Payback at Borralha Tungsten Project

    Allied Critical Metals Highlights Strong Cash Flow and Rapid Payback at Borralha Tungsten Project

    Allied Critical Metals has released additional economic and technical details from the Preliminary Economic Assessment (PEA) of its Borralha tungsten project in northern Portugal, highlighting strong cash flow potential, rapid capital recovery and capital-efficient development.

    The company confirmed that the previously announced project economics remain unchanged, including an after-tax net present value (NPV) of $473.4 million and an internal rate of return (IRR) of 48.8% based on a tungsten price of $1,000 per metric tonne unit (mtu) of WO₃.

    Under this scenario, the project is expected to achieve payback in approximately 2.2 years from the start of commercial production, equivalent to about 4.2 years from the beginning of construction.

    The underground tungsten project requires initial capital investment of about $124.2 million (US$91 million). The development plan incorporates a compact infrastructure layout designed to support efficient underground mining and processing operations.

    According to the PEA, the project could generate average annual revenue of approximately $184.9 million and average annual EBITDA of about $104.1 million over the initial mine plan at the $1,000/mtu WO₃ price assumption. Average annual free cash flow is estimated at roughly $70.5 million.

    The economic outlook strengthens significantly at higher tungsten prices. At $1,500/mtu WO₃, the project’s after-tax IRR increases to 78.4% and NPV rises to $963.8 million.

    The current mine plan is based on an initial production period of 11 years with average annual output of about 1,708 tonnes of WO₃ concentrate. Processing capacity is expected to reach approximately 1.4 million tonnes of ore per year with an average grade of about 0.20% WO₃.

    Tungsten accounts for around 96% of the project’s economic value, with minor contributions from copper and tin.

    Infrastructure for the project includes a planned connection to Portugal’s national power grid through a 60 kV line, water supply and recycling systems, road access, and a paste backfill facility designed to support underground operations while minimizing environmental impact.

    The project will produce tungsten concentrate grading about 65% WO₃ using a gravity-dominant processing flowsheet, which reduces metallurgical complexity and operating costs.

    The current resource estimate for the Santa Helena Breccia deposit includes 13.0 million tonnes of measured and indicated resources at 0.21% WO₃, along with 7.7 million tonnes of inferred resources at 0.18% WO₃.

    Allied Critical Metals is currently conducting a fully funded 20,000-metre drilling program aimed at expanding the mineral resource, upgrading inferred resources to higher confidence categories and potentially extending the mine life beyond the initial 11-year production plan.

  • The “Daughter” of “Samruk-Kazyna” to start exploration this year at one of the largest tungsten deposits outside China

    The “Daughter” of “Samruk-Kazyna” to start exploration this year at one of the largest tungsten deposits outside China

    The “Daughter” of “Samruk-Kazyna” will begin an exploration of one of the largest tungsten deposits outside China this year. The National Mining Company “Tau-Ken Samruk” (“daughter” of “Samruk-Kazyna”) will start scientific research on the tungsten project Upper Kayrakty in the Shet district of the Karaganda region, said the chief business development officer of the company Nariman Absametov.

    “The final aspect of the tungsten ore project. Kazakhstan possesses the largest reserves adjacent to China, and we see tremendous potential in this direction… We plan to conduct research in this direction on the Upper Kayrakty project,” he said during the MINEX Kazakhstan -2024 forum.

    The company plans to develop and test heap leaching technology for tungsten ores.

    “To find good heap leaching technologies for tungsten ores directly. No one else is doing this yet, but we have similar technologies for copper, and I think they will be quite suitable conditions. For this, we will also conduct research this year,” Absametov said.

    The first stage in the form of large-scale laboratory research will take place this year already. According to him, in case of a positive outcome of this research, the company plans to move on to the second stage.

    The resource volume for the Upper Kayrakty project according to western JORC standards in the Measured+Indicated+Inferred categories amounts to 683.7 million tons of tungsten ore (712 thousand tons of tungsten trioxide in the ore). Upper Kayrakty is included in the list of deposits of strategic importance.

    In 2018, the chairman of the board of “Tau-Ken Samruk” Kanat Kudaibergen (now this position is held by Bakyt Chirchikbayev) announced that tungsten mining at the deposit was planned to start in 2022. Later, it was reported about the plans of the Chinese Xiamen Tungsten to become a strategic partner in the Kazakh tungsten project, however, in 2020, the key shareholder of the company did not approve the deal, as the State Property Supervision and Management Committee of China refused to approve the deal.

    Chirchikbayev said during the MINEX Kazakhstan -2024 forum that “Tau-Ken Samruk” received a positive conclusion from state expertise on the feasibility study for the tungsten project Northern Katpar and Upper Kayrakty.

    “For the tungsten project Northern Katpar and Upper Kayrakty, we literally at the end of March received a positive conclusion of state expertise on the feasibility study of the project and immediately distributed it to all interested partners through a ‘data room’ with whom confidentiality agreements have been signed. At the moment, this project is under consideration by several partners. Next, we will wait, implementing everything through the rules of project privatization,” Chirchikbayev noted.

    At the same time, Absametov mentioned another project.

    “For the exploration of rare earth metals – our project ‘Akbulak’. Its implementation. This is our license in the Kostanay region. We work here with the American company Cove Capital, which invests in Kazakhstan. Contractual conditions have already been signed, geological exploration work is starting – at least two to three years. we hope to find something significant,” he said.

    In early April, the press service of “Samruk-Kazyna” reported that the American Cove Capital and the national mining company “Tau-Ken Samruk” (“daughter” of “Samruk-Kazyna”) will jointly search for rare and rare-earth metals in the Akbulak area of the Kostanay region, near Arkalyk. The relevant agreement was signed by the parties on April 8.

    For joint work, American investors will create a joint venture together with “Tau-Ken Samruk” and “Kazgeology”. Cove Capital will fully finance geological exploration until reserves are put on the balance sheet.

    “Rare earths are very tricky materials. They can depend on the proportional ratio. Not all of them are very valuable. But everyone wants those rare earth metals where the necessary proportionate ratio already exists, and project costs are also important,” Absametov said.

    According to him, the company will answer these questions together with the American partner in the next three years.

    Earlier it was reported that the company KAZ Critical Minerals, owned by KAZ Resources (USA, a subsidiary of American Cove Capital), will conduct exploration of rare metals in the Gremyachinsky area of the Ulan district of the East Kazakhstan region without partnership with “Tau-Ken Samruk”.

    KAZ Critical Minerals received a six-year license for the exploration of solid minerals on June 5, 2023. In the materials for the public hearings on April 12, the company reported that the goal of geological exploration work on several blocks with a total area of 4.5 square km is to search for rare metal ores.

  • Saryarka Tungsten Plans Development of Southern Zhaure Deposit in Karaganda Region

    Saryarka Tungsten Plans Development of Southern Zhaure Deposit in Karaganda Region

    The Saryarka Tungsten LLP intends to exploit the Southern Zhaure deposit located in the Karaganda region. The company has submitted its project documentation on the Unified Environmental Portal of Kazakhstan. The mining site falls within the Shetsk district. Tungsten ores and valuable components of the deposit were included in the state balance back in 2016. The company’s mining plans highlight that the balance reserves of ore amount to 122.19 million tons, with 199 thousand tons of tungsten trioxide (average metal content in ore – 0.163%), 13.1 thousand tons of molybdenum (average content – 0.010%), and 6.4 thousand tons of bismuth (average content – 0.005%). Additionally, there are another 36 million tons of unbalanced ore and 62.3 thousand tons of tungsten trioxide. Studies have revealed that the ores of Southern Zhaure are easily enrichable compared to those of similar deposits such as Northern Katpar and Upper Kayraktinskoye. Saryarka Tungsten LLP aims to extract up to 4 million tons of ore annually. It is estimated that the deposits will be sufficient for over 30 years of quarry operation. The company plans to construct a new ore enrichment plant on the site, with production slated to begin in 2027. The company will produce concentrates of grades KMSH-2 with a tungsten trioxide content of 60% and KMSH-3 with a tungsten trioxide content of 55%.

  • Kazakhstan Advances Tungsten Mining Project in Almaty Region

    Kazakhstan Advances Tungsten Mining Project in Almaty Region

    Kanat Sharlapaev, Minister of Industry and Infrastructure Development of Kazakhstan, met with representatives of Jiaxing International Resources Investment LTD to discuss the progress of the tungsten mining project at the Bugytinskoye deposit in the Almaty region.

    TOO “Zhetysu Tungsten” is constructing a mining enterprise to implement the tungsten mining project at the Bugytinskoye deposit. The deposit holds a contract for mineral extraction (Contract No. 4608-TPI dated June 2, 2015, for a term of 25 years).

    Construction, installation, and mining operations are actively underway with operations scheduled to commence by the end of 2024. The deposit and processing plant are expected to create 1000 job opportunities.

    The project aims to mine and process 3.3 million tons of tungsten ore, producing 65% tungsten concentrate. Currently, there’s an economic feasibility study for constructing a deep processing complex to further process the 65% tungsten concentrate into 88.5% ammonium paratungstate and high-purity tungsten carbide.

    Following the meeting, both parties expressed gratitude and underscored the importance of bilateral relationship development.