Darling Range Bauxite Operations (Huntly and Willowdale) Feasibility Study: $55M NPV Over a 9-Year Mine Life
Alcoa Corporation's Darling Range Bauxite Operations (Huntly and Willowdale) in Western Australia, Australia has a Feasibility Study outlining an after-tax NPV of $55M. The proposed mine plan runs 9 years.
Alcoa Corporation's Darling Range Bauxite Operations (Huntly and Willowdale) has reported Feasibility Study results for the bauxite project in Western Australia, Australia. The study headlines an after-tax net present value of $55M at a 9.5% discount rate. It reflects Alcoa Corporation's (AA) latest disclosed economics for the asset.
Economics. The after-tax NPV is $55M using a 9.5% discount rate. Economics are based on Average LOM Price Assumption of $23.19/t bauxite.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 9 years. Average head grade is 30.4% AL (Measured), 29.2% AL (Proven Reserve), 30.8% AL (Probable Reserve).
Resources and ownership. The company holds a 100% interest in the project.
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 | 26.1 Mt | 29.2% AL, 1.61% SI | — |
| Probable | 397.6 Mt | 30.8% AL, 1.56% SI | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 139.6 Mt | 30.4% AL, 1.77% SI | — |
| Indicated | 48.7 Mt | 30.3% AL, 1.42% SI | — |
| Inferred | 101.4 Mt | 32.4% AL, 1.20% SI | — |
Our Analysis
- NPV after-tax
- $55M
higher than 7% of 465 projects we track
- Mine life
- 9yrs
- Study price assumption
- Average LOM Price Assumption of $23.19/t bauxite
A nine-year mine life is the first thing to register here, because it frames everything else: this is a modest, finite cash-generating asset in Western Australia, not a multi-decade franchise. For a large-cap producer with a diversified portfolio (one of 10 projects we track for the company), that matters less as a standalone bet and more as an incremental contributor to a much bigger whole.
The after-tax NPV of $55M ranks higher than just 7% of the 465 projects we track across all commodities. That is the honest headline: on the numbers as published, this sits in the bottom tier of the peer set. It is not a value trap and not a hidden gem; it is a small asset with a small NPV, and the ranking tells you the market has plenty of alternatives with more scale. Against a company market cap of US$11.73B, the NPV is well below the company's size on a rough currency-adjusted basis, so this project simply cannot move the equity needle. That cuts both ways: it means negligible dilution or financing risk to the parent, and equally that no re-rating hinges on it.
The constraint that matters most is the study's own price deck. The average life-of-mine assumption is $23.19/t bauxite, and the returns stand or fall on whether that number holds through the mine's nine years. Feasibility-level work carries the most weight (typically a plus or minus 15% band), so the estimate quality is sound, but a nine-year life leaves little room to absorb a weaker bauxite price environment. The question that decides this project: does the operation stay cash-positive at $23.19/t across the full nine years?
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.