Jan. 11, 2011 - The pre-tax internal rate of return has jumped 21.2% in a Project Definitive Feasibility Study at the Gunson Resources Coburn zircon project, due to using new price forecasts for the price of zircon and titanium minerals.
This figure is based on the Australian and United States dollars at parity, and assumes a drop in the royalty rate to 2.5% from the current 5%.
Gunson considers there is a strong case for the royalty reduction as the new Iluka Resources Eucla Basin mineral sands mine in South Australia is only paying a 1.5% gross royalty for the first five years.
Gunson said the current Western Australian state royalty regime provides no incentive for heavy mineral sand producers to refine their concentrates to final mineral product, as the royalty for both is the same, at 5%.
This is in contrast to the lower 2.5% incentive rate provided to base metal concentrate producers to produce a final metal product.
This figure is based on the Australian and United States dollars at parity, and assumes a drop in the royalty rate to 2.5% from the current 5%.
Gunson considers there is a strong case for the royalty reduction as the new Iluka Resources Eucla Basin mineral sands mine in South Australia is only paying a 1.5% gross royalty for the first five years.
Gunson said the current Western Australian state royalty regime provides no incentive for heavy mineral sand producers to refine their concentrates to final mineral product, as the royalty for both is the same, at 5%.
This is in contrast to the lower 2.5% incentive rate provided to base metal concentrate producers to produce a final metal product.
