McLaren Minerals’ Pre-Feasibility Study confirms a robust, low-risk titanium mining project in Western Australia, projecting nearly A$900 million EBITDA over 16 years. The study highlights strong market demand and validated processing methods, setting the stage for the next development phase.
- Expanded Mineral Resource Estimate of 529Mt at 4.5% heavy minerals
- 15.9-year mine life with A$2.78 billion total revenue forecast
- Pre-tax NPV8 of A$252.2 million and IRR of 26.0%
- Validated dry mining and slimes management techniques
- Marketing underway targeting sulfate ilmenite offtake agreements
Pre-Feasibility Study Validates McLaren Titanium Project
McLaren Minerals Limited has released the results of its Pre-Feasibility Study (PFS) for the McLaren Titanium Project, located in the Eucla Basin of Western Australia. The study confirms the project as a straightforward, long-life operation with strong financial fundamentals. Over an initial mine life of nearly 16 years, the project is forecast to generate A$2.78 billion in total revenue and deliver an EBITDA of approximately A$900 million, with a payback period of just 3.7 years.
The PFS builds on an expanded Mineral Resource Estimate (MRE) of 529 million tonnes at 4.5% heavy minerals, including a substantial indicated resource of 249 million tonnes at 4.7%. This resource upgrade, announced in late 2025, significantly enhances the project’s economic potential and flexibility for future optimisation.
Technical and Operational Highlights
McLaren’s approach utilises proven dry mining techniques combined with traditional mineral sands separation equipment, developed in collaboration with IHC Mining. The study addressed key technical risks, notably the management of high slime content in the ore, through extensive test work that validated effective thickening, dewatering, and co-disposal methods. These conventional mineral sands processing methods reduce operational complexity and execution risk.
The project’s processing plant will produce two main products – a sulfate ilmenite concentrate and a non-magnetic concentrate containing zircon, rutile, and leucoxene. Pricing assumptions are conservative, based on independent market analysis, with ilmenite concentrate priced at US$250 per dry metric tonne FOB and non-magnetic concentrate at US$366 per dry metric tonne delivered.
Strong Market Position and Financial Metrics
McLaren’s product quality is highly attractive to the growing sulfate ilmenite market, a critical feedstock for titanium pigment and slag production. The company has already initiated marketing efforts and engaged potential offtake partners, aiming to secure agreements ahead of the Bankable Feasibility Study (BFS) phase.
Financially, the project delivers a pre-tax net present value (NPV) at an 8% discount rate of A$252.2 million and an internal rate of return (IRR) of 26.0%, underpinned by an average annual EBITDA of A$56.5 million. Operating costs are estimated at A$1,699 million over the life of mine, with an EBITDA margin of approximately A$129 per dry tonne of finished product.
Next Steps and Development Outlook
McLaren’s Managing Director, Simon Finnis, emphasised the PFS as a key milestone that de-risks the project and validates its development strategy. The company plans to commence the BFS shortly, focusing on optimising mine design, capital expenditure, and operational parameters. More than 60% of the total resource remains unmined in the current case, offering upside potential for resource expansion and value enhancement.
Key opportunities identified include potential cost reductions through local sourcing of materials, modular plant design adoption, and power supply optimisation. Meanwhile, risks such as regulatory approvals, market price fluctuations, and operational challenges are being actively managed with mitigation strategies in place.
With a solid foundation established, McLaren Minerals is positioned to advance the McLaren Titanium Project towards development, responding to increasing demand for critical minerals essential to aerospace, defence, and energy sectors.
Bottom Line?
McLaren Minerals’ PFS sets a confident tone for the McLaren Titanium Project, but the upcoming Bankable Feasibility Study will be crucial to confirm reserves and finalise development plans.
Questions in the middle?
- How will McLaren secure offtake agreements amid evolving sulfate ilmenite market dynamics?
- What capital funding strategies will McLaren pursue to finance project development?
- How might potential regulatory or environmental approvals impact the project timeline?