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Mining

Australian Mines relocates corporate office to Brisbane

A bankable feasibility study was recently completed for the Sconi Cobalt-Nickel-Scandium Project.

Australian Mines Ltd (ASX:AUZ) has relocated its corporate headquarters to Brisbane CBD in Queensland from Perth, Western Australia.

The relocation to Queensland reflects the company’s commitment to developing its 100%-owned Sconi Cobalt-Nickel-Scandium Project located near Greenvale in North Queensland.

AUZ also anticipates opening a regional operational office in the Greenvale-Townsville-Charters Towers area during the coming year.

READ: Australian Mines BFS values Sconi Cobalt-Nickel-Scandium Project at $697 million

A bankable feasibility study (BFS) recently ascribed the project a pre-tax net present value (NPV) of $1.31 billion and post-tax NPV of $697 million.

The BFS modelled an 18-year mine life producing nickel sulphate, cobalt sulphide and scandium oxide from three open pits using a 2 million tonne per annum processing plant.

READ: Australian Mines upbeat about recent BFS at today’s AGM

Speaking at the company’s AGM earlier this week, AUZ’s chairman Michael Ramsden said: “This proposed operation would generate average revenues from production of over half a billion dollars per year with an average annual EBITDA of around $300 million.

“The BFS indicated average cobalt sulphate production of eight and a half thousand tonnes per annum and average nickel sulphate production of fifty-three thousand tonnes per annum.

“Both of these numbers are within the acceptable range of our off-take agreement with Korean-based EV battery manufacturer SK Innovation, who have agreed to take 100% of the cobalt and nickel produced.”

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