FLSmidth is to supply the key roasting kiln section of the Gabanintha vanadium project process plant as part of a binding notice of award the OEM has signed with project owner Technology Metals Australia.
Technology Metals Australia developed a relationship with FLSmidth during the definitive feasibility study (DFS) phase of the Gabanintha project, with the Denmark-based OEM conducting the pilot plant scale salt roasting test work on a bulk sample of Gabanintha magnetic concentrate at its facility in Pennsylvania, USA.
The pilot scale rotary kiln test work (pictured), using a 9.8 m long by 0.9 m in diameter rotary kiln, enabled continuous processing of the magnetic concentrate to provide measurement of key processing factors such as salt dosage, vanadium solubility, recovery and residence times. Such data was used by FLSmidth to assist in engineering design, sizing and cost estimate studies for the ‘roasting’ section of the processing circuit for inclusion in the DFS, TMA said.
The DFS envisaged the development of a plus-16 year operation, producing 27.9 MIb/y of vanadium oxide, with production commencing in 2022. From years one to 12, the run of mine processing rate was estimated to be 1.7-2.3 Mt/y and the total pre-production capital for the build came in at A$454 million.
The supply proposal under the notice of award contemplates the completion of a front-end engineering and design (FEED) study and supply of the required equipment for the complete roasting kiln section of the Gabanintha processing plant. The value of the proposed supply contract is circa-A$50 million ($35 million, ex GST), including approximately A$860,000 (ex GST) for the FEED study.
The commencement of the FEED study is subject to written instruction from the company to proceed and is envisaged to be completed within 26 weeks.
FLSmidth-supplied equipment qualifies for export credit agency financing support through Denmark’s EKF, subject to EKF board approval and thorough due diligence, Technology Metals Australia said. The ASX-listed company said it will be actively pursuing the opportunity to access this funding support as an important part of the overall project funding strategy.