How Dubbo project will become a substantial cash generator., page-17

THE exploration and mining company behind the $1 billion Dubbo Zirconia Project (DZP) is becoming a sheep and cattle producer.
Alkane Resources has established the Toongi Pastoral Company, employed experienced farm manager Fergus Job and started looking for a station hand for a farm of up to 2000 hectares.
About six properties covering 3500 hectares have been purchased by Alkane Resources at Toongi with about 500 hectares earmarked for the DZP operating site and 1000 hectares for regeneration of bushland as "biodiversity offsets".
Alkane Resources managing director Ian Chalmers said the "substantial land package" remaining had made an agricultural enterprise possible along with the means to maintain the land.
"The intention is to look after the land as much as we possibly can," he said.
"We don't want to see it degenerate, become full of feral animals and weeds and rubbish."
Mr Chalmers said Alkane Resources had acquired excess land because of a decision to buy "whole farms".
"Realistically, we couldn't buy half of a farm or a third of a farm," he said.
"A lot of the farms there are quite small."
Alkane Resources foray into agriculture does not set a precedent with Mr Chalmers reeling off the names of other mining companies with pastoral concerns in NSW and Australia.
"We intend to run ours as a commercial farming operation," he said.
"We expect it to be self-sufficient within a couple of years."
Mr Chalmers said the farm would focus on the breeding and fattening of sheep and cattle, yet to be sourced.
"The initial plan is for Fergus to look at the properties and see what is needed to be done in terms of infrastructure and improvements," he said.
"Some fences may need to be replaced and water sources fixed or replaced."
Alkane Resources expects the yet-to-be-built DZP to have a life of 80-plus years.
Mr Chalmers predicted the Toongi Pastoral Company would also achieve longevity, irrespective of who owned it.
The Toongi Pastoral Company is a wholly-owned subsidiary of Alkane Resources as is Australian Zirconia Limited (AZL).
AZL is charged with finalising financing arrangements for the DZP.