Tungsten Mining’s Watershed project in Far North Queensland is fully permitted for mining and production, clearing a major development hurdle as the company works towards a final investment decision (FID) later this year.
All primary approvals are now in place for the 100 per cent-owned tungsten project, including its Environmental Authority and Progressive Rehabilitation and Closure Plan.
Its referral under the Environment Protection and Biodiversity Conservation Act was also determined to be “not a controlled action – [in a] particular manner”, according to the release.
The company has lodged its environmental rehabilitation security, enabling site works to begin, while an Indigenous Land Use Agreement is in place with the Western Yalanji Aboriginal Corporation; a Cultural Heritage Management Plan has also been established, with heritage surveys ongoing.
Tungsten Mining chairman Gary Lyons said the approvals strengthened the company’s pathway towards development.
“With our full Environmental Authority and PRCP approved on granted Mining leases, Watershed is now fully permitted through to construction and operations,” he said.
“Our site works and camp construction are now well underway as we advance towards our DFS and Final Investment Decision later this year.”
Up to 60 people are currently working across Watershed’s drilling, site establishment, water-bore and geotechnical programs, and access-road construction and approved clearing is progressing around the proposed processing plant, early mining and accommodation areas.
The project’s facilities are being expanded to accommodate more than 100 personnel by the end of September and over 200 by the end of November.
Tungsten Mining said the early works would establish access and working areas while reducing critical-path activities following FID, although full construction remains subject to financing and other project conditions.
Watershed’s rapid progression marks a significant step from the exploration and evaluation work in April, when Tungsten Mining was preparing a 15,000m drilling campaign targeting high-grade, near-surface mineralisation.
The company has since increased Watershed’s mineral resource to 69.7 million tonnes grading 0.11 per cent tungsten trioxide.
A June preliminary economic evaluation outlined a potential eight-year operation, with pre-production capital of $274 million, a pre-tax net present value of $1.31 billion and a pre-tax internal rate of return of 198 per cent.
The approvals also build on Tungsten Mining’s $53 million capital raising earlier this year, which was intended to accelerate Watershed and the company’s Mt Mulgine project in Western Australia.
More recently, Tungsten Mining appointed Cutfield Freeman & Co to develop a funding strategy for Watershed, assessing debt alongside strategic investment, government support and offtake-linked funding, as reported in August.
A definitive feasibility study is scheduled for October, with FID targeted for late 2026 and first production in the first half of 2027.