Darling Range Bauxite Mines Feasibility Study: $1.32B NPV Over a 7-Year Mine Life
Alcoa Corporation's Darling Range Bauxite Mines in Western Australia, Australia (southwest of Western Australia; Huntly ~80 km SE of Perth, Willowdale ~100 km SSE of Perth) has a Feasibility Study outlining an after-tax NPV of $1.32B. The proposed mine plan runs 7 years.
Alcoa Corporation's Darling Range Bauxite Mines has reported Feasibility Study results for the bauxite (alumina) project in Western Australia, Australia (southwest of Western Australia; Huntly ~80 km SE of Perth, Willowdale ~100 km SSE of Perth). The study headlines an after-tax net present value of $1.32B at a 9% discount rate. It reflects Alcoa Corporation's (AA) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.32B using a 9% discount rate. Economics are based on Average bauxite price of $25.49/tonne (base case).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 7 years. Average head grade is 32% available alumina (A.Al2O3); reserves 32.4% A.Al2O3 / 1.01% R.SiO2 (Proven), 32.2% A.Al2O3 / 1.38% R.SiO2 (Probable).
These figures are extracted from Alcoa Corporation's technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 108.6 Mt | 32.4% A.Al2O3, 1.01% R.SiO2 | — |
| Probable | 132.7 Mt | 32.2% A.Al2O3, 1.38% R.SiO2 | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 48.0 Mt | 32.9% A.Al2O3, 1.11% R.SiO2 | — |
| Indicated | 34.8 Mt | 31.9% A.Al2O3, 1.12% R.SiO2 | — |
| Inferred | 320 Mt | 33.0% A.Al2O3, 1.2% R.SiO2 | — |
Our Analysis
- NPV after-tax
- $1.32B
higher than 75% of 462 projects we track
- Mine life
- 7yrs
- Study price assumption
- Average bauxite price of $25.49/tonne (base case)
The after-tax NPV of $1.32B ranks this bauxite project above roughly three-quarters of the 462 projects we track across all commodities. That is a respectable position, but rank alone can mislead: the top quartile is crowded with assets that never get built, and what separates them is rarely the resource. Here, the distinguishing feature is scale. The NPV is about 0.1x the company's US$11.73B market cap, and the company carries eight other projects in our coverage. This is a large, diversified miner for which Huntly and Willowdale represent a modest slice of enterprise value, not a transformational bet. The practical consequence is that the returns matter far less to the equity story than the execution does.
The numbers themselves arrive with the weight of a feasibility study, the build-ready estimate typically carrying a plus or minus 15% band, so they deserve more credence than a scoping-level PEA would. The mine life is short at 7 years, which limits the tail of cash generation and puts pressure on the ramp-up: a slow start eats a meaningful share of the value. The study assumes an average bauxite price of $25.49 per tonne, and the sensitivity to that single assumption is the cleanest way to read the downside.
Western Australia is a mining-friendly jurisdiction with established bauxite infrastructure, which lowers permitting and operating risk. The project is already at production stage, so the question is not whether it can be built but whether the operation delivers against the feasibility case. The single question that decides this: does the realised bauxite price hold near $25.49 per tonne across a 7-year life?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.