Darling Range (Huntly) Bauxite Mine Feasibility Study: $122M NPV Over a 9-Year Mine Life
Alcoa Corporation's Darling Range (Huntly) Bauxite Mine in Western Australia, Australia has a Feasibility Study outlining an after-tax NPV of $122M. The proposed mine plan runs 9 years.
Alcoa Corporation's Darling Range (Huntly) Bauxite Mine has reported Feasibility Study results for the bauxite project in Western Australia, Australia. The study headlines an after-tax net present value of $122M at a 12% discount rate. It reflects Alcoa Corporation's (AA) latest disclosed economics for the asset.
Economics. The after-tax NPV is $122M using a 12% discount rate. Economics are based on Average LOM Price Assumption $21.46 per tonne (bauxite).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 9 years. Average head grade is Product: average AL grade of 33%; Mineral Reserves: Proven 29.1% AL, 1.65% SI; Probable 31.9% AL, 1.27% SI.
Resources and ownership. The company holds a 60% 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 | 48.0 Mt | 29.1% AL, 1.65% SI | — |
| Probable | 296.0 Mt | 31.9% AL, 1.27% SI | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 93.0 Mt | 30.44% AL, 1.52% SI | — |
| Indicated | 105.4 Mt | 30.75% AL, 1.34% SI | — |
| Inferred | 106.9 Mt | 32.32% AL, 1.22% SI | — |
Our Analysis
- NPV after-tax
- $122M
higher than 15% of 553 projects we track
- Mine life
- 9yrs
- Study price assumption
- Average LOM Price Assumption $21.46 per tonne (bauxite)
A feasibility study on an operating bauxite mine in Western Australia, with a nine-year life and an after-tax NPV of $122M, ranks above only 15% of the 553 projects we track across all commodities. That is the honest starting point. For an investor, the rank is the message: this is a modest asset by the standards of the peer set, not a mispriced one hiding in plain sight. The feasibility stage is what earns the numbers their weight, since a build-ready estimate typically carries a plus or minus 15% band and deserves more confidence than a scoping-level PEA. But confidence in the estimate is not the same as scale, and on scale this project sits toward the bottom of the group.
The constraint that matters most is funding, and it is not really a constraint here. The $122M NPV sits well below the company's US$11.14B market cap, currency-adjusted. A large-cap with a diversified portfolio of 18 projects we track does not need this mine to work, and can absorb its capital demands without strain. That cuts against the usual development risk, but it also cuts against the upside: a project this size, inside a company this size, will not move the equity meaningfully even if it performs exactly as the study assumes.
The remaining sensitivity is the study's own price assumption: an average life-of-mine bauxite price of $21.46 per tonne. That figure is the variable the outcome rests on, and it is worth testing against a range of scenarios rather than accepting at face value. Western Australia is a mining-friendly jurisdiction, which supports execution. The question that settles it: does the realised bauxite price hold near $21.46 per tonne across nine years, or does a thin margin on a small NPV erode first?
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.
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