Ormonde gets go-ahead for Spain tungsten mining

Ormonde Mining’s potentially transformational tungsten mine in western Spain is set to be commissioned and begin production in early 2016.

The Meath-based mining firm yesterday announced that it has been granted a mining concession for its breakthrough Barruecopardo Tungsten Project, near the city of Salamanca.

The permit — from the director general for energy and mines in the Castilla y Leon region and granted to Ormonde’s wholly-owned Spanish subsidiary, Saloro — is the final regulatory approval hurdle necessary in order for the Clonee-based company to proceed with the project, which is by far its main asset.

The concession covers an area of approximately six square kilometres.

This area includes the main Barruecopardo deposit and any potential strike extensions.

The permit lasts for an initial period of 30 years, but it may thereafter be renewed for two further 30-year periods.

Commenting on the news, the managing director of Ormonde, Kerr Anderson, said: “The receipt of the mining concession for our flagship Barruecopardo Tungsten Project in western Spain is clearly a major milestone for the project, and for Ormonde.”

Based on current tungsten prices, Ormonde expects to generate net revenues of around $320m (€258m) over the initial five years of the mine.

Barruecopardo could supply an estimated 8% of all tungsten — which is chiefly used in the aerospace sector — sourced outside of China, the leading supplier of the metal.

Ormonde has already reached an agreement to sell all production from the mine, for its first five years, to the Singapore-based investment holding company, Noble Group.

An extension option is also being included in the agreement.