The Environmental Authority of Australia has granted Carbine Tungsten (ASX:CNQ) approval to process its hard rock stockpiles up to 3 million tonnes per annum.
Carbine as it aims to be a major tungsten producer with rapid development cleared for its hard rock stockpiles. With the approval, the company will now be able to transition from a tailings re-treatment operation to hard rock production, which will significantly increase its output. The company will still continue to optimize output from its tailings plant.
Managing Director, Jim Morgan, told investors in a statement that “Securing the Environmental Authority from the DEHP is a significant milestone in establishing a substantial hard rock production operation.” Carbine submit its Environmental Management PLan (EMP) with the Queensland department of environment and heritage protection (DEHP) on 14 March 2013.
Environmental Approval is a significant milestone for the company as it moves forward with its new strategy of re-establishing old workings at the Mt. Carbine project. The company is supported through it’s off-take partner Mitsubishi. As Tungsten Investing News reported in June, the company required environmental approval before it became eligible to receive funding from Mitsubishi. Carbine is now looking to finalize the funding arrangements and add further short term value to its investors.
Given the weak Australian dollar and strong tungsten price, Carbine Tungsten is in a position that will allow it to increase revenue through increased production. Carbine is also exploring other avenues of funding and is actively engaged in discussions with other interested parties.
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article.