March of the mining ‘megaproject'

Mining companies have taken significant steps forward in a string of major projects with the completion of new economic studies.

Ongoing research by Mining Journal Intelligence (MJI) identified 18 new studies for mining ‘megaprojects' - defined as assets with initial capex requirements of more than US$1 billion – published since the start of 2024. The studies range from the PEA or scoping to feasibility stages. 

The largest seven had initial capex estimates of over $1.5 billion. The studies or updates showed aggregate production of 325,000tpa copper along with significant volumes of lithium, uranium and rare earth elements. 

Highest-capex projects

 

1. Santo Domingo: $2.32 billion capex

Capstone Copper is seeking financing and a partner to advance its Santo Domingo project in Chile. An updated feasibility study in July outlined an open pit operation producing 68,100tpa copper and 3.6Mtpa iron concentrate, along with a gold byproduct, over a 19-year mine life. 

The project will deliver a post-tax IRR of 24.1% at US$4.10/lb copper. Measured and indicated resources contain 1.70Mt copper at an average grade of 0.31%. Capstone plans to invest US$50 million in advancing Santo Domingo this year.

2. Cañariaco: $2.16 billion capex

A 2024 optimised PEA confirmed Cañariaco's status as a Tier 1 primary copper asset, supported by its large size, long life and robust economics, according to owner Alta Copper.

The May study showed an open pit operation producing 134,000tpa copper, 61,000ozpa gold and 1.2Mozpa silver over a 27-year mine life, at all-in costs of $1.96/lb. The asset, in northern Peru, will deliver an after-tax NPV of $2.3 billion and a 24.1% IRR at $4.00/lb copper.

The initial capex of $2.16 billion is more than double the $1.04 billion estimate from a 2022 PEA, which outlined a smaller operation with copper output of 78,543tpa. 

 

3. Boardwalk: $2.16 billion capex

The Boardwalk project, located in Alberta, Canada, is among the largest lithium deposits in North America. LithiumBank's updated PEA, released in January 2024, outlines a production capacity of 34,005tpa of battery-grade lithium hydroxide monohydrate (LHM). 

The study projects a 20.6% IRR, based on a $26,000/t LHM price assumption.  Since the release of the PEA, LithiumBank has been working to advance and de-risk the project. Further mineral sampling is underway.

4. Rook I: $1.58 billion capex

NexGen Energy is nearing the final stages of the federal approval process for its Rook I uranium asset, in Saskatchewan's Athabasca Basin region.

The company released updated capex and operating cost estimates for the asset in August, following the completion of a feasibility study in 2021.

The updated study showed a post-tax NPV of C$6.30 billion (US$4.43 billion) and an IRR of 45.2% at US$95/lb U3O8. The project will produce 19.8Mlbpa U3O8 over an 11-year mine life.

Initial capex of US$1.58 billion is significantly higher than the C$1.3 billion in the 2021 feasibility study. Rook I was the second-highest scoring project globally in MJI's 2024 Project Pipeline Handbook.

5. Cascabel: $1.55 billion capex

A new PFS reaffirmed Cascabel's world-class potential, with the Ecuadorean asset set to become a top 20 copper producer globally, owner SolGold said.

The study, released in February 2024, showed production of 123,000tpa copper and 277,000ozpa gold over a 28-year mine life at the underground asset, which delivers a post-tax IRR of 24% at a copper price of $3.85/lb.

Measured and indicated resources at the Alpala deposit contain 10.7Mt copper and 26.8Moz gold at average grades of 0.35% and 0.28gpt respectively. The PFS showed initial capex savings of over $1.00 billion compared to previous estimates. 

6. Clayton Valley: $1.54 billion capex

Century Lithium reached a key milestone at the Clayton Valley project in Nevada with the completion of a feasibility study in April.

The study showed an operation producing 34,000tpa battery-grade lithium carbonate and delivering a post-tax IRR of 17.1% at assumed prices of $24,000/t.

Following a drilling program in late 2024, Century Lithium is now focussing efforts on engineering, permitting and advancing funding talks to move the project forward. Century aims to establish itself as a domestic lithium producer to supply the US electric vehicle and battery storage market.

By Celia Aspden

 

Edited by Sam Williams

 

 

 

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