TNG has signed a binding contract with rail provider Genesee & Wyoming Australia to haul material from the Mount Peake mine more than 1100 kilometres to a processing facility in Darwin, Northern Territory.
Mount Peake, which is around 235 kilometres north of Alice Springs, will become a producer of vanadium, titanium and iron when it is developed.
TNG plans to leverage Genesee & Wyoming’s majority-owned Tarcoola-to-Darwin rail line to transport magnetite concentrate to the proposed Tivan processing facility in Darwin.
At the processing facility, high-purity vanadium pentoxide, titanium pigment and iron ore fines will be produced.
Genesee & Wyoming Australia chief executive officer Luke Anderson said the company “looked forward to providing rail haulage solutions to ensure a successful logistics supply chain”.
The concentrate will be loaded at the Adnera rail siding at Tarcoola, around 85 kilometres from Mount Peake, for transportation to the Tivan facility, after which the final product will be loaded for transportation to Darwin Port.
Genesee & Wyoming will also supply all necessary locomotives, wagons, vans and fuelling equipment to accommodate the process.
“We are delighted to have engaged (Genesee & Wyoming Australia) as Mount Peake’s rail haulage service provider,” said TNG managing director and CEO Paul Burton.
“(Genesee & Wyoming’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.”
TNG’s Mount Peake project received a $10 million push earlier this month from two investors in Germany as part of a $15 million capital raising.
The operation is expected to be one of the largest global vanadium projects once production begins, with a 19-year mine life and JORC-complaint resource of 160 million tonnes (118 million tonnes measured) at 0.28 per cent vanadium, 5.3 per cent titanium and 23 per cent iron.