The Mining Management Plan (MMP) for the Jervois Base Metal Project has officially been given the green light by the Northern Territory Government this morning.
Located 380 kilometres northeast of Alice Springs, the Jervois Base Metal Project has the potential to create 350 jobs during peak production.
The approval allows Kentor Minerals Pty Ltd (wholly owned by KGL Resources Ltd) to develop the mine, which will include on-site processing and the production of a copper concentrate and a lead/zinc concentrate.
KGL acquired the Jervois Base Metal Project in 2011 and set a strategic direction to improve the mineral resource at Jervois, particularly to increase the grade of copper.
In line with recommendations from the Territory Economic Reconstruction Commission’s final report, the Jervois Base Metal Project approval is now the fourth significant mine approval in the past 12 months for the Northern Territory, with other approvals being the Core Lithium Finniss Lithium Project; Nathan River Resources Nathan River Project; and the McArthur River Mine Overburden Management Project.
Minister for Mining and Industry, Nicole Manison, said the approval is big news for the Territory, with mining being a huge job creator for Territorians – employing over 4,400 people directly.
“The total value of mineral production in the Northern Territory for 2019-20 was $4.4 billion and as outlined in the TERC Report, establishing new mines creates local jobs for Territorians and significantly boosts our economy,” the Minister said.
“This is the fourth major mine approval over the past 12 months in the Northern Territory and a further step to strategically position us as a globally-significant hub for producing, processing and manufacturing minerals.”
KGL Chairman, Denis Wood, said that it is the major outstanding approval required prior to the Jervois Project’s development.
“Our current project planning takes into account the conditions attached to the Government response, so this landmark approval provides an essential clearance for Jervois,” Mr Wood said.
“The recently announced Pre-Feasibility Study (PFS) results show that the high-grade Jervois deposit will support a robust initial 7.5-year mining operation. We are confident the drilling about to start in the new year will improve the quality and size of the resource.”
“The new information will be fed into the full Feasibility Study (FS) which now has the company’s highest priority. Work is already well advanced on the FS which we expect will improve the economics of Jervois even further,” he said.
Mr Wood detailed that, with the PFS completed and the authority to mine now in place, discussions have commenced on project financing and the marketing of the mine’s concentrate.
“Jervois is exceptionally well placed to enter the world copper market as a supplier. It is a high-grade deposit (9.4Mt at 2.41 per cent Cu Reserve) at a time of declining copper grades among the major copper mines and constrained copper production generally. At the same time demand is expected to increase strongly for copper in both emerging green energy and electric vehicles uses as well as traditional construction, electricity transmission, communication and consumer goods applications,” he said.
“The copper price currently is US$7914 per tonne, having reached US$7968/tonne (US$3.61/lb) last month.”
The approved MMP outlines measures that will be taken to minimise environmental impacts and ensure long-term beneficial land uses after closure. The approved MMP is publically available on the NT Government’s website, here.
