Elementos (ASX: ELT) plans to complete its Definitive Feasibility Study (DFS) for its Oropesa Tin Project, Spain, by the end of 2024 following support from the Andalucian Government for a modified project layout.
The local government considering the company’s Environmental Application had raised concerns about the mining project and treatment plant and relevant environmental regulations. An agreement has now been reached for layout modifications that improve environmental and community outcomes. The administration also reaffirmed its support for Oropesa as one of seven key mining projects in the government’s Project Accelerator Unit.
Joe David, Managing Director at Elementos, commented: “The Oropesa Project is one of the world’s largest undeveloped, open-cut tin deposits with special strategic significance to the European Union which is committed to sourcing a responsible and local ‘domestic’ supply of critical minerals like tin.”
“The [Andalucian Government] has always been a strong supporter of the Project and we thank the officials in its key departments for working collaboratively with the company to find a responsible way forward which further improves the project’s ESG credentials.”
Elementos updated its project forecast with the DFS now set to be completed in the fourth quarter of 2024, receipt of environment and mining licences by the end of 2025, and targeted first production by the end of 2027.
The project modifications include the moving of the planned external waste dumps and the tailings dam to areas of lower flora and wildlife density, and the relocation of the access road to avoid overlap with an existing stock cattle route. As a result, the proposed processing plant has been moved and the open pit shell reconfigured to maintain efficient operations.
The modifications also included a change to the open pit rehabilitation plan, with the pit now to only be partially back-filled, therefore reducing end-of-mine-life rehabilitation costs.
Our view: The resumption of the licencing process and DFS is an important step in bringing this resource closer to production, now targeted for end-2027. With the company now preparing re-submission of regulatory reports, we look forward to seeing continued progress at Oropesa.
