Mothballed mine operations prepare for production
MELIOR Resources, the owners of the Goondicum Mine, have confirmed work has recommenced at their ilmenite operation outside Monto.
Melior is now gearing up for recommissioning and steady-state production is on target to begin in November.
The announcement comes after an agreement was reached with the largest mineral sands processor in China, Hainan Wensheng High-Tech Materials Co.
The long-term off-take arrangement with the Chinese firm secured Melior a US $5 million windfall in return for 600,000 tonnes of ilmenite to be supplied over the next six years - representing roughly 65 per cent of Goondicum's output.
Melior Resources chief executive officer Mark McCauley said their internal figures were promising and the agreement would ensure the sustainability of the operation.
"The current plan is for a nine-year mine life,” Mr McCauley said.
"We have never had a long-term off-take agreement in place before,” he said.
"For a high-quality Chinese producer to provide funding is very positive for the project.”
There are a range of small projects to improve operational efficiency - including the installation of a new hopper for the raw material that is fed directly into the on-site processing facility - that must be undertaken before production can resume.