Aus Tin to support construction of Tasmanian wind farm

Dressing of final grade tin concentrate. Image: Aus Tin Mining

Aus Tin Mining has signed an agreement with Lucas Total Contract Solutions on a $280 million wind farm development near its Granville East open cut mine in Tasmania.

The company will supply non-acid forming (NAF) waste rock from its Granville East mine to help construct the Granville Harbour wind farm, which sustains a 1850-strong beef cattle farm around five kilometres from the mine.

The agreement includes the sale of up to 120,000 tonnes of NAF waste from existing waste rock emplacements immediately east of the open cut.

The wind farm will comprise 31 turbines with a 112-megawatt capacity and is expected to be operational in late 2019.

The financial benefits of the agreement are expected to equate to four or five months of Aus Tin’s owner mining operating costs, with a corresponding reduction in the forecast cash costs.

Owner mining operating costs at Granville are estimated at $100,000–130,000 per month depending on blasting requirements, and are inclusive of equipment rental, fuel and labour.

Aus Tin adopted owner mining after the collapse and subsequent termination of its contract with mining contractor Jemrok.

“Since assuming owner mining in mid-March, the company has been and will continue to pursue opportunities for further operational and financial efficiencies and improvements,” Aus Tin said in an ASX statement.

“[Aus Tin] has commenced the process to obtain the necessary approvals and will work with Lucas and the regulators to complete the process as soon as possible, noting the potential environmental benefits of reduced ground disturbance at both the Granville East mine and the wind farm.”

The company also said the development would provide it with reduced provision for future site rehabilitation.

Processing of ore and production of tin concentrate continues at Granville’s processing plant.

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