AusTin Mining says it has entered into a non-binding heads of agreement with Lucas Total Contract Solutions to supply non-acid forming (NAF) waste rock from the Granville East mine, in Tasmania, Australia, for construction purposes at the Granville Harbour Wind Farm.

The A$280 million wind farm will comprise 31 turbines with a 112‐MW capacity and is expected to be operational in late-2019, according to AusTin.

AusTin commenced tin mining at the Tasmania operation in February.

The wind farm is around 5.5 km from the Granville East mine and, subject to obtaining all regulatory permits, the agreement contemplates the sale of up to 120,000 t of NAF waster from the existing waste rock emplacement area, immediately east of the open-pit mine.

“The proposed sale of NAF waste rock provides two key benefits to AusTin Mining, being an additional revenue stream and reduced provision for future site rehabilitation,” the company said.

“The financial benefits of the agreement will be analysed upon receipt of all regulatory permitting conditions but are expected to equate to four or five months of owner mining operating costs, with a commensurate reduction in the previously announced forecast cash costs.”

AusTin Mining said it had commenced the process to obtain all necessary approvals and would work with Lucas to complete the process as soon as possible, noting “the potential environmental benefits of reduced ground disturbance at both the GranvilleEast mine and the wind farm”.

In the interim, the company said processing of ore production in concentrate continued at the processing plant.