Hillgrove Resources and Heavy Minerals have signed an agreement to extract and sell garnet from Kanmantoo process tailings in South Australia, aiming to generate income and extend the operational life of the tailings storage facility (TSF). Hillgrove will receive revenue payments and an initial payment, with Heavy Minerals guaranteeing a minimum annual revenue and constructing a garnet processing plant.

The agreement includes a 15% gross revenue payment for in-specification garnet sales during mine operations, reducing to 5% post-closure. Hillgrove will also receive $25/t for out-of-specification garnet, with a guaranteed minimum revenue of $500,000 per annum, increasing to $1m at 100,000tpa production. Heavy Minerals may use the TSF for further extraction post-mine closure.

Garnet, a specialized industrial mineral, is utilized in water jet cutting and abrasive applications. Heavy Minerals is expected to produce up to 50,000tpa for the initial three years, increasing to 100,000tpa in the fourth year. Hillgrove secured a A$10m standby debt facility in October 2024 to enhance operations at the Kanmantoo copper mine.

The agreement between Hillgrove and Heavy Minerals is set to provide multiple benefits, including a new income stream, extension of the TSF’s life, and potential transfer of rehabilitation obligations post-closure. This partnership signifies a strategic move towards sustainable resource utilization and operational efficiency in the mining sector.

Read more at Yahoo Finance: Hillgrove and Heavy Minerals sign garnet tailings processing agreement