Austpac’s program at the Newcastle Plant in 2007–08 was designed to lead to a full bankable feasibility study (BFS) for the first commercial ERMS SR synrutile plant.
The main purpose of the Demonstration Plant was to provide data for detailed engineering design and costing of a commercial ERMS SR synrutile plant. At that time Austpac had intended to commercialise the ERMS SR technology by building a 60,000 tpa synrutile plant in Eastern Australia, subject to the completion of a BFS. This was an acceptable 20 times scale up from the ERMS SR Demonstration Plant at Newcastle.
In 2008–09, a number of international groups undertook exhaustive testing of the bulk ERMS SR synrutile produced at the Plant with very positive results. Several of the groups have expressed a strong and ongoing interest in this conceptual project, but they are awaiting operations at Newcastle Iron Recovery Plant to provide basic data for a BFS into the 60,000 tpa synrutile plant.
Preliminary cash flow models prepared in 2008 for a 60,000 tpa plant indicate very robust project economics. With an anticipated capital cost of $120 million, the plant has the potential to make $45 million per year before tax, interest and depreciation. The project payback on these parameters is less than 3 years with a project IRR of over 30%. These cash flow models have not been updated as Austpac’s current focus is the Newcastle Iron Recovery PlantReturn to top