TNG signs Mount Peake rail haulage agreement

TNG Limited has signed a binding heads of agreement with Genesee & Wyoming Australia, or “GWA”, for the provision of rail haulage services for its Mount Peake vanadium-titanium-iron project in the Northern Territory.

GWA is Australia’s third-largest rail operator and majority owner of the rail line of the 2250km Tarcoola to Darwin rail line that passes close to the project.

The scope of services includes the loading of magnetite concentrate at the Adnera rail sliding located 85km from the mine site, rail haulage from Adnera to TNG’s proposed processing plant in Darwin and unloading of the concentrate there.

GWA will also load and transport TNG’s final products from the plant to the Darwin port for export.

The two companies will work together to develop an optimised rail haulage strategy for Mount Peake and finalise a rail haulage agreement.

TNG Managing Director Paul Burton said: “GWA’s presence and expertise in logistics and transportation further strengthens TNG’s global network of high-quality partners assigned for the development and operation of Mount Peake.”

Mount Peake has an ore reserve of 41.1 million tonnes grading 0.42% vanadium pentoxide, 7.99% titanium dioxide and 28% iron.

Ore from the project will be processed in Darwin using the company’s proprietary TIVAN process to produce 243,000 tonnes of high-purity vanadium pentoxide, 3.5 million tonnes of titanium dioxide pigment and 10.6 million tonnes of high-grade iron oxide during the initial 19-year mine life.

TIVAN is a method for treating ore without the need for expensive, energy-intensive roasting.