Moljinshan tungsten mine in Western Australia has become a world-class deposit.

According to Miningnews.net's website, Tungsten Mining (TGN) once again declared that the latest pre-feasibility study based on last year's rough research shows that its Mt Mulgine project in Western Australia with an investment of A $870 million will become the largest and lowest-cost tungsten mine in the world by 2029.

The pre-feasibility study shows that under the benchmark situation, the annual mining capacity of 8 million tons will be formed in the first stage, and after the production is expanded to 16 million tons in the mid-1930s, Murjinshan will become the largest single tungsten mine in the world.

The benchmark data show that after the first stage of development, according to the annual output WO3)7006 tons of tungsten concentrate (WO3), the after-tax net present value will be 4.8 billion US dollars, the internal rate of return will be 48%, and the total sustainable cost will be 181 US dollars per ton (mtu).

Project Goals and Output

The goal of the project is to produce 50% tungsten concentrate, 50% molybdenum concentrate and 20% copper (gold and silver) concentrate.

According to the metal quantity, the annual output is 5653 tons of tungsten, 3.09 million pounds of molybdenum, 1.97 million pounds of copper, 8,263 ounces of gold and 453,872 ounces of silver.

Financial Projections

The mining life of mine is 21 years. According to the tungsten price of $1,509 /mtu predicted by Fastmarkets, the payback period of the project is 32 months.

In 2034, 420 million Australian dollars will be invested to expand production, and the annual production capacity will be increased to 10,959 tons of tungsten equivalent, but the recoverable life will be reduced to 14 years.

The net present value of the second stage is expected to rise to A $5.76 billion, and the internal rate of return is 50%.

If the current tungsten price of US$ 3,000 /mtu continues, the economic value of the project will double, with a net present value of A $13 billion and an internal rate of return of 99%.

Cost Competitiveness

The cost is very competitive.

TGN claims that its total maintenance cost of $127 /mtu is much lower than that of its competitors, such as $180 /mtu for the tungsten mine in Nui Phao, Vietnam, and $280 /mtu for EQ Resources in Barruecopardo, Spain.

Exploration and Resources

The 1.5-kilometer-long Murjinshan deposit has been explored since the 1960s, but it has not been controlled along the strike and deep.

TGN Company will verify the extension of the ore body 200 meters below the open pit, upgrade the estimated resource quantity to the estimated resource quantity, and set the exploration target as follows: the ore quantity is 165-200 million tons, and the grade is 0.12%.

At present, the project reserves 144 million tons, with a grade of 0.1%. It is estimated that the ore resources are 175 million tons with a grade of 0.11%. It is estimated that the ore resources are 72 million tons with a grade of 0.11%.

Key Minerals as the Core

The key mineral for TGN's exploration in recent years is gold, but with the appearance of tungsten price, TGN has focused on key minerals.

Another development project of TGN, Watershed, will make a final investment decision of A $274 million this quarter and put into production in mid-2027.

The ore resources of the Waterhead Project are 69.7 million tons, with a grade of 0.11%. The designed annual mining capacity is 3 million tons, and the tungsten concentrate (WO3) is 2,090 tons.

source:https://geoglobal.mnr.gov.cn/zx/kcykf/resources_update/202609/t20260902_10305001.htm