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Toliara Project PFS confirms status as a globally renowned mineral sands development

Published by , Assistant Editor
Global Mining Review,

African mineral sands producer Base Resources Ltd (Base Resources) has released the outcomes of the Pre-Feasibility Study (PFS) on its Toliara Project in Madagascar. The PFS confirms the company’s view that this is a world class mineral sands project with estimated post-tax/pre-debt (real) NPV10 of US$671 million and a sector leading average revenue to cost ratio of 3.06 over the 33 year initial mine life.

Managing Director of Base Resources, Tim Carstens, said: “We are delighted to be able to share these PFS findings. They confirm our long-held view, which informed the project’s acquisition by Base Resources in early 2018, that the Toliara Project is one of the best mineral sands development opportunities in the world.”

“The release of the PFS findings today is a significant milestone for Base Resources as it provides a clear basis for understanding our value proposition as we progress towards becoming a multi-operation mining company.”

Executive Director Operations and Development of Base Resources, Colin Bwye, said: “Base Resources’ Toliara Project PFS work has been completed to a high standard with the assistance of a group of highly experienced independent consultants, including: Mineral Technologies, Lycopodium, IHC Robbins, Aurecon and PRDW.”

“The team is already working on the Definitive Feasibility Study which we aim to complete by the end of 2019, ahead of a planned final investment decision in 1Q20. This could see us in operation at Toliara by the end of 2021. In full production, the Toliara Project will export over 860 000 t of product, generating around US$250 million of revenue and NPAT of US$110 million annually. The PFS presents an initial 33 year mine life, however, with only 46% of the existing Ranobe deposit Mineral Resources being utilised, there is significant potential to extend this further, which will be investigated with further drilling during the DFS.”

“Importantly, the project will bring significant stimulus to the Malagasy economy, particularly for the communities near the planned operation, with an estimated construction workforce peaking at 1600 and an ongoing operational workforce of over 1100. Consistent with our approach at the company’s Kwale Operations in Kenya, we will strive to ensure as much local content as possible, creating many more indirect employment opportunities, as well as implementing a suite of high impact community development initiatives.”

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