The TNG Ltd (ASX: TNG) share price is climbing today after the company announced its Mount Peake project was awarded Major Project Status.
TNG is an Australian resource and mineral processing technology company. Minister for Industry, Science and Technology, the Honourable Karen Andrews MP, awarded the project its status due to its proposed significance in growing and diversifying Australia's critical minerals industry.
At the time of writing, TNG's share price is 9.7 cents.
A closer look at the Mount Peake project
The Mount Peake project, solely owned by TNG, is set to be a world-scale strategic metals asset. It will produce titanium dioxide, vanadium pentoxide and iron oxide through TNG's patented, energy-efficient and cost-effective production measures.
The project is to be located across two Northern Territory sites – approximately 235km north of Alice Springs – and a processing facility in Darwin. It is anticipated that the project will make a significant contribution to Australia's critical minerals industry, with a mine and processing facility life of 37 years.
According to today's announcement, the project will create up to 1,600 jobs during construction, 1000 on-going positions and contribute to economic development in the Northern Territory.
The project plans to not only deliver new mining infrastructure to the Northern Territory, but non-processing infrastructure like haul roads, office facilities and infrastructure for logistics and utilities.
As well as its mining sites, the project will incorporate the creation of the Darwin TIVAN Processing Facility (DPF). The TIVAN process, patented by TNG, promises to be more energy-efficient and cheaper than traditional recovery processes. The DPF will treat magnetite concentrate, extracting and producing minerals to satisfy the demands of the renewable energy sector.
Further, TNG is in partnership with German-based engineering firm SMS group to develop carbon-neutral hydrogen production technology to be applied to the TIVAN process.
TNG is in the process of seeking confirmation of the final cost of the Beneficiation Plant and the DPF. After which, it will seek out an Engineering Procurement Construction proposal for delivery of the facilities.
Commentary from management
TNG's managing director and CEO Paul Burton said the award of Major Project Status is testament to the substantial benefits expected to be delivered by Mount Peake.
Securing the support and involvement of the Australian Government in helping to facilitate the development of a global scale critical minerals project like Mount Peake is significant for TNG and its shareholders. It will assist in ensuring certainty of process for the remaining permitting and approvals required both for the Mount Peake mine site and the Darwin TIVAN Processing Facility and represents an important endorsement of the Project as we embark on the next stages of project financing.
Additionally, TNG and the Mount Peake Project is well positioned to contribute to the growing demand for sustainable green energy through TNG's newly established VRFB business unit and its strategic partnership with SMS group to develop a CO2-neutral technology for green hydrogen production.
TNG share price snapshot
The TNG share price is currently up 33% over the past 12 months, but is flat so far this year.
It has a market capitalisation of approximately $113 million and 1.25 billion shares outstanding.
