Darling Range Bauxite Operations (Huntly & Willowdale) Feasibility Study: $55M NPV Over a 9-Year Mine Life
Alcoa Corporation's Darling Range Bauxite Operations (Huntly & 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 & 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 $23.19/t bauxite.
Production and mine plan. The project envisions an open-pit (contour mining) operation. Life of mine is 9 years.
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 8% of 413 projects we track
- Mine life
- 9yrs
- Study price assumption
- Average LOM Price Assumption $23.19/t bauxite
Bauxite is a bulk commodity, and this project is a bulk-commodity outcome. The after-tax NPV of $55M ranks higher than only 8% of the 413 projects we track, placing it firmly in the lower quartile of investment-grade returns. That rank is not a disqualifier, but it sets the tone: this is a modest, steady cash-flow asset, not a growth engine. The feasibility study, with its plus or minus 15% band, is the most dependable estimate this project will ever produce, so the confidence in the numbers is high even if the absolute scale of the prize is small.
The constraint that matters most is not geology or metallurgy, it is the balance sheet. The company is a US$11.94B large-cap with a diversified portfolio of 8 tracked projects, and this build sits well below its market cap on a rough currency-adjusted basis. That is the defining feature of this investment. A project of this size is immaterial to the parent's valuation, which cuts both ways: it can be funded from cash flow without dilution or distress, but it will also do little to move the share price on its own. Investors are not buying this for the NPV; they are buying it as one line in a much larger, de-risked portfolio.
The 9-year mine life in Western Australia is a jurisdictionally safe, production-stage asset, and the $23.19/t average LOM price assumption is the key sensitivity to watch. Bauxite prices are not volatile enough to create upside surprises, so the returns are what they are: reliable, unexciting, and fully dependent on operational execution rather than commodity leverage. The single question that decides whether this works is whether the company's management bandwidth and capital allocation discipline treat a project this small with the same rigor as its larger peers. If it does, the NPV is bankable. If it is treated as a portfolio afterthought, the 8% rank will look generous.
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.