Ormonde develops Spanish mine
EXPLORATION company Ormonde Mining said it will move to the next stage of plans to develop a tungsten mine in Spain after a feasibility study revealed large deposits of the valuable mineral.
Ormonde said a study commissioned by the Dublin-listed company indicated the mine had a good chance of making money with an average production of 227,000 metric tonnes a year.
"It's an important step for us," said Ormonde chief executive Kerr Anderson. "We now have a timetable, a plan to become a big tungsten player."
Tungsten is a dense metal which is 19 times heavier than water and is used to make light bulb filaments and X-ray tubes. Around 85pc of the world's tungsten is found in China.
Ormonde has spent around €5m or €6m on developing the Barruecopardo project but will have to spend around €48.5m to begin extracting the tungsten.
The company will either borrow money or take a strategic partner, Mr Kerr said. He ruled out asking shareholders for fresh cash. An announcement is expected by the end of June.
Ormonde's study estimates the mine would generate annual pre-tax operating cash flow of €29m.