- Posted by Whittle Consulting
- On November 27, 2020
- 0 Comments
Whittle Consulting (“WCPL”) has reported on the completed Enterprise Optimisation study for the Blötberget Project. The final study, of which a summary is now available at the company web page, shows significant upside relative to previously published preliminary result. The optimization of the previously presented feasibility study increases the net present value by circa 50% to USD 172 million.
The optimization study aims to improve the NPV, IRR and unit cash cost OPEX by providing improvements to project planning, mine scheduling and a more detailed basis for the final design engineering and costing prior to construction. The upcoming detailed engineering refers to both mine planning and engineering work around the concentrator, as well as the design of facilities for ore transport and loading of finished products.
At the end of September, the preliminary outcome of the optimization study performed by Whittle Consulting was published. This showed the possibility of increasing the project’s net present value, “NPV”, to USD 145.4 million, using a discount rate of 8%. The increase is mainly due to an optimisation of mining schedules, while essentially maintaining the assumptions on which the feasibility study is based.
Thereafter, the work has continued with analysis of scenarios, some of which merely optimise the DFS and others which deviate from the assumptions made in the feasibility study. As an example, the possibility of optimizing the beneficiation process to maximise magnetite output has been modelled. One consequence of this analysis is the introduction of a third product of a coarser ground magnetite concentrate with 67-68%Fe content, which has less power consumption and allows for unused power to be used for additional ore processing. This proved to be able to increase the NPV to just over USD 172 million and deliver an internal rate of return of 21.2% for the project.