Business Reporter -
MUSCAT, JULY 24 -
Oman-based Strategic & Precious Metals Processing LLC (SPMP) has increased the capital budget for developing the Oman antimony roaster project in Suhar to $96.0 million, one of the shareholders announced yesterday.
London-based Tri-Star Resources, which has a 40 per cent stake in SPMP, said the process test-work on the roaster project has been largely completed. Quoting SPMP, Tri-Star said the focus is now on operational readiness, while the forecast for plant commissioning has been moved to the first quarter of 2018. As a result of SPMP achieving process design freeze for the project, more definitive appraisal of the costs of the project has been undertaken, it noted.
As a result, SPMP has approved of an increase in the capital budget for the project to $96.0 million from $70.0 million. The intent of the bigger budget is to increase the capability of the plant to accept a wider range of feedstock such as direct shipping ores. It also will be used to expand the downstream gold treatment and gas handling to allow the project to bring in other feed sources for high gold content. Finally, it will be used to change the design and minerals for construction of the gold furnaces, to improve plant life and equipment performance.
The previous budget of $70.0 million comprising senior debt of $40.0 million from Oman’s Bank Nizwa and $30.0 million in equity, and Strategic is currently working with stakeholders to increase the budget through cash flow positive operations. Tri-Star said it expects to be invited in a further round of financing to keep its 40 per cent interest in the project.
The roaster project is planned to produce over 20,000 tonnes of antimony products per annum and recover over 50,000 ounces of associated gold. The plant is one of the first in decades to be built to international standards for emissions, is highly automated and benefits from the natural advantages of its location in Oman, namely proximity to a major port and trade routes to Asia, low energy costs, good local power and infrastructure, modern waste handling facilities and a zero tax zero duty environment.
Antimony is a critical metal used in a wide variety of industrial, electronics and plastics sectors. Supply has been dominated by China for a number of decades. Major economies of Europe, US and Japan are almost entirely import dependent on China for this critical and scarce element. The SPMP vision is to provide a clean, sustainable and environmentally compliant source of antimony to global consumers.
Oman Observer is now on the WhatsApp channel. Click here
