Northern Minerals Ltd (ASX:NTU) has decided to temporarily suspend site operations at the Browns Range Pilot Plant Project in the East Kimberley region of Western Australia.
The decision comes amid the impacts of the COVID-19 virus and the broad range of necessary measures being undertaken by the Australian Federal and WA governments.
Northern Minerals anticipates progressive travel restrictions within regional WA will be required to halt the spread of COVID-19.
The global, national and state outlook indicates that there will be growing difficulty in moving people to and from the Browns Range site.
Decision made to ensure longevity
Northern Minerals managing director and CEO George Bauk said: “We understand this decision will have a significant impact on all our employees.
“These are difficult, uncertain and unprecedented times.
“These decisions are not made lightly and are taken to ensure the health and safety of our employees and the community within which we operate.
“While this decision will obviously have a significant impact in the near term, we are hopeful that our resilience and adaptability will ensure our longevity and that Northern Minerals will be ready to rebound when the global situation improves.”
Rare earth carbonate transported to Darwin
Prior to this decision being made, the company transported a further 27 tonnes of heavy rare earth carbonate to Darwin for export and sale, with all material produced since commencement now sold or ready to be sold.
The recent consignment crossed the WA - NT border before it closed on Tuesday and a demobilisation plan has been enacted and a small care and maintenance team will remain on site on an alternating four week on four week off roster.
Northern Minerals will continue to monitor the situation as it evolves and work with authorities to resume operations when it is considered safe to do so.
While site-based activities have been suspended, there are several value-enhancing projects that will continue.
The exploration team is currently working on a resource update for the high-grade Dazzler deposit following the recent drilling program, which is expected to be released in the next few weeks.
Export Finance Australia letter of support
Export Finance Australia (EFA) is Australia’s Export Credit Agency, 100% owned by the Australian Commonwealth Government, with a mandate to support Australian businesses as they seek to develop new Australian export markets.
EFA has provided a letter of support to Northern Minerals advising they are willing to continue to explore the potential provision of finance required for the Browns Range processing plant.
Any provision of finance by EFA remains subject to further detailed due diligence by EFA, and on reaching agreement on the proposed terms of any financing.
Separation test work
The test work program for the pilot plant project will be analysed during the production hiatus and any further refinements to the processing flowsheet will be implemented as part of the potential re-start of the pilot plant.
The separation program is being conducted by K-Tech in the USA, however, results will be delayed as a result of COVID-19.