New mine to pull in $600m a year Christopher O'Leary20May08 A...

New mine to pull in $600m a year

Christopher O'Leary

20May08

A NEW multi-minerals mine near Aileron will be up and running in three years and is expected to sell more than $600 million of product a year.

Arafura Resources said the Nolans Bore mine, 135km northwest of Alice Springs, could cash in on the global demand for phosphoric acid which is used for fertiliser production.

Arafura sustainability manager Brian Fowler said rare earth and phosphoric acid would make up 57 and 30 per cent of the mine's potential profit, while calcium chloride and uranium would provide 9 per cent and 4 per cent respectively.

He said: ``There's a global demand for phosphoric acid, and as a response the price has increased.''

Chief financial officer Gavin Lockyer said while predicted annual costs could be up to $262m the mine's value was excellent.

He said: ``With a life of the mine in excess of 20 years, $602 million is not a bad number.

``Annual operating costs are in the order of between $209m and $262m based on our pre-feasibility study, and we are looking at ways to reduce these.''

Managing director Alistair Stephens said in Tokyo yesterday testing was still being carried out, but he predicted around 500,000 tonnes of concentrate ore would be mined annually