Friday, 29 June, 2007

by Alison Bevege
NT News

A GIANT minerals processing plant is to be built in Darwin.

Exploration company Arafura Resources plans to build the $300 million mill in Darwin to separate ore mined at its Nolans Bore project, near Aileron, 135km north of Alice Springs.

Plant construction is expected to begin in 2009, about the same time mining is due to start at Nolans Bore.

The factory is expected to create between 50 and 70 jobs in Darwin with a further 10 to 20 at Aileron.

About 500,000 tonnes of calcium chloride, 150,000 tonnes of phosphoric acid, 20,000 tonnes of rare earths and up to 200 tonnes of uranium will be produced each year at the plant.

Calcium chloride is used as a dust suppressant, road cementing agent and drilling fluid in the oil and gas industries.

Phosphoric acid is a fertiliser.

Rare earths are used in mobile phones, LCD screens and hybrid electric cars.

The plant is expected to bring in $475 million per year.

The product will be freighted to Darwin by train and then shipped out through the Port of Darwin, most likely to China.

The plant's uranium will be a by-product of the operation -- it will make Arafura Resources the first new uranium producer in the Territory and, possibly, Australia.

The Australian Uranium Association says that Nolans Bore contains 3977 tonnes of uranium at a grade of 0.02 per cent.

Arafura managing director Alistair Stephens (pictured) said yesterday that if uranium had to be extracted to produce the rest of the products, then it was more responsible to sell it than to dispose of it as waste as there were much more stringent controls on uranium that is sold.

The first attempts at processing the ore will take place at a pilot plant at Lucas Heights in New South Wales later this year.