Specialty Metals ready to enter niche tungsten market
Speciality Metals International Limited (ASX:SEI) released its quarterly activities report on Wednesday morning, focusing on the refurbishment of the Mt Carbine Retreatment Plant in North Queensland.
In the lead up to the September quarter, the joint venture between Speciality Metals and Cronimet Asia Pte Ltd for the development of the Mt Carbine Tungsten Tailings Retreatment and Stockpile Projects was formalised.
The September quarter was a transitional period for Specialty Metals as the company completed its acquisition of Mt Carbine Quarries Pty Ltd (Mt Carbine Quarries), an entity that owns and operates the Mt Carbine Quarry and Mining Leases ML 4867 and ML 4919.
The significant strides taken by Specialty Metals in positioning itself as a near-term tungsten producer are reflected in its share price performance which has increased 150% in the last six months.
On track for commissioning in December quarter
In today’s update management said that a four-person JV Management Committee had been established with its first meeting occurring during the September quarter.
This management team along with various engineers and technical personnel from Cronimet, Speciality Metals and certain external parties have overseen the design of the Mt Carbine Retreatment Plant refurbishment.
In recent weeks, all plant and equipment was delivered to the Mt Carbine site.
Assembly of the newly arrived steel support structures has commenced in preparation for the equipment to be positioned over the coming weeks.
The electrical wiring and engineering work will commence once all equipment is in place.
Cranes have also been arranged for the final positioning of the heavy equipment and then the final phase of installation will commence ahead of commissioning which is expected to occur in the December quarter.
While commissioning in itself will be a milestone event, it will also be an inflection point where investors begin to focus on the transition to production and revenue generation, potentially attributing a higher valuation to the stock given the normal risks associated with project development and construction will no longer be a factor.
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