162
D. Dreisinger et al.
Table 7 Operating cost summary
Cost centre
(USD)
Life of mine (USD/t Ore
feed)
(USD/t Pb Ingot)
Mining
362,791,836
10.00
332
Flotation concentrator
394,655,986
10.88
361
Hydrometallurgical facility
332,459,946
8.89
295
Supply and logistics
149,702,419
4.13
137
Sustainability
45,657,670
1.26
42
Corporate and G + A
86,411,841
2.38
79
Sustaining capital
32,882,477
0.91
30
Total opex
1,394,562,775
38.43
1276
Operating Cost Estimate
The operating cost for the base design case is shown below. The cost is based
on mining material movement costs by RHM, manpower schedule by RHM, allinclusive labour rates provided by RHM, work cycles provided by RHM, quotations
for reagents sourced by SNC-L, reagent usage by SNC-L, power generating costs
on a BOO arrangement, RHM quotation for transportation of lead ingots to Fremantle and no contingency. The costs exclude royalties and finished product shipment
costs from port to market which are treated as ‘net backs’ to sales revenue, plant
closure and decommissioning costs, Esperance environmental settlement agreement
commitment, depreciation, GST, corporate tax, and finance related costs (Table 7).
Conclusions
The DFS provided the following conclusions.
• The capital cost estimate to build the proposed hydrometallurgical facility, make
modifications to the existing Flotation Concentrator and associated infrastructure
for the Project is US$183.7 M (including Owners costs of US$20.8 M and a
contingency of US$14.9 M and growth allowances of US$6.4 M).
• The average operating cost to produce 99.99% lead ingot is US$1276/t (including
overhead and sustaining capital over the 17-year life of mine).
• A mineable reserve of 36.3 Mt at 3.71% Pb grade for a 17-year mine life.
• Concentrate grades of the order of 72% lead were achieved over a range of head
grades from 3 to 11% lead. An average flotation recovery of 83% lead was achieved
at a 3.71% lead head grade.
• Impurity elements within the concentrate were significantly reduced resulting in
lower hydrometallurgical facility operating costs.
D. Dreisinger et al.
Table 7 Operating cost summary
Cost centre
(USD)
Life of mine (USD/t Ore
feed)
(USD/t Pb Ingot)
Mining
362,791,836
10.00
332
Flotation concentrator
394,655,986
10.88
361
Hydrometallurgical facility
332,459,946
8.89
295
Supply and logistics
149,702,419
4.13
137
Sustainability
45,657,670
1.26
42
Corporate and G + A
86,411,841
2.38
79
Sustaining capital
32,882,477
0.91
30
Total opex
1,394,562,775
38.43
1276
Operating Cost Estimate
The operating cost for the base design case is shown below. The cost is based
on mining material movement costs by RHM, manpower schedule by RHM, allinclusive labour rates provided by RHM, work cycles provided by RHM, quotations
for reagents sourced by SNC-L, reagent usage by SNC-L, power generating costs
on a BOO arrangement, RHM quotation for transportation of lead ingots to Fremantle and no contingency. The costs exclude royalties and finished product shipment
costs from port to market which are treated as ‘net backs’ to sales revenue, plant
closure and decommissioning costs, Esperance environmental settlement agreement
commitment, depreciation, GST, corporate tax, and finance related costs (Table 7).
Conclusions
The DFS provided the following conclusions.
• The capital cost estimate to build the proposed hydrometallurgical facility, make
modifications to the existing Flotation Concentrator and associated infrastructure
for the Project is US$183.7 M (including Owners costs of US$20.8 M and a
contingency of US$14.9 M and growth allowances of US$6.4 M).
• The average operating cost to produce 99.99% lead ingot is US$1276/t (including
overhead and sustaining capital over the 17-year life of mine).
• A mineable reserve of 36.3 Mt at 3.71% Pb grade for a 17-year mine life.
• Concentrate grades of the order of 72% lead were achieved over a range of head
grades from 3 to 11% lead. An average flotation recovery of 83% lead was achieved
at a 3.71% lead head grade.
• Impurity elements within the concentrate were significantly reduced resulting in
lower hydrometallurgical facility operating costs.