Broken Hill Prospecting Ltd. (ASX:BPL) announced that an “independent, detailed business model” carried out on the company’s cobalt-pyrite deposits near Broken Hill has brought to light a standalone sulfuric acid project that is potentially viable.

As quoted in the press release:

A two-million-tonnes-per-year facility could operate for 20 years or more by roasting cobalt-pyrite at Broken Hill mined from BPL’s nearby Thackaringa resource. Sulphuric acid is in strong demand domestically by major industries including mineral processing and fertiliser production. Australia currently imports large amounts of the chemical.

Highlights from the study include:

  • CAPEX; AUD768.5m (includes mining, concentrate plant, freight, roast/acid plant)
  • Sale price; AUD186/t sulphuric acid
  • Revenue per year; AUD381.5 million
  • Profit margin; 30%
  • Cost estimates; ±50%
  • Sensitivity analyses show an opportunity for significant value creation when cost estimates are reduced by 40% from base case cost assumptions.

Click here to read the full Broken Hill Prospecting Ltd. (ASX:BPL) press release.