Darling Range (Huntly & Willowdale bauxite mines) Feasibility Study: $1.32B NPV Over a 7-Year Mine Life
Alcoa Corporation's Darling Range (Huntly & Willowdale bauxite mines) in Western Australia, Australia (Darling Range, southwest Western Australia) has a Feasibility Study outlining an after-tax NPV of $1.32B. The mine plan runs 7 years at about 241.3 Mt bauxite (total LOM) per year.
Alcoa Corporation's Darling Range (Huntly & Willowdale bauxite mines) has reported Feasibility Study results for the bauxite (alumina) project in Western Australia, Australia (Darling Range, southwest Western Australia). 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.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 7 years. Average annual production is approximately 241.3 Mt bauxite (total LOM). Average head grade is 32.4% A.Al2O3 (Proven Reserves), 32.2% A.Al2O3 (Probable Reserves).
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 | 108.6 Mt | 32.4% A.Al2O3 and 1.01% R.SiO2 | — |
| Probable | 132.7 Mt | 32.2% A.Al2O3 and 1.38% R.SiO2 | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 48.0 Mt | 32.9% A.Al2O3 and 1.11% R.SiO2 | — |
| Indicated | 34.8 Mt | 31.9% A.Al2O3 and 1.12% R.SiO2 | — |
| Inferred | 320 Mt | 33.0% A.Al2O3 and 1.2% R.SiO2 | — |
Our Analysis
- NPV after-tax
- $1.32B
higher than 75% of 403 projects we track
- Mine life
- 7yrs
- Study price assumption
- Average bauxite price of $25.49/tonne
The $1.32B after-tax NPV places this asset in the top quartile of the 403 projects we track, a credible but not exceptional position for a project of this scale. What matters more than the rank is what sits behind it: a feasibility study, the build-ready estimate with a typical plus or minus 15% band, and a mine life of just 7 years. That short life is the defining constraint. The NPV is concentrated in a narrow production window, which means the project's value is highly sensitive to the timing of build completion and any ramp-up delays. A 7-year mine life does not offer the durability that long-life investors in this space typically seek, and it leaves little room for operational underperformance to be absorbed.
The funding picture is the offsetting strength. At roughly 0.1x the company's US$11.94B market cap, the build cost is a rounding error for this large-cap, and the company carries a diversified portfolio of five tracked projects. This is not a single-asset story where financing risk dominates. The company can fund this from its own balance sheet without the dilution or project-financing hurdles that would define a junior's attempt at the same build. That removes the most common reason a good study fails to become a mine.
The jurisdiction and commodity are both favorable: Western Australia's Darling Range is a known bauxite region, and the study's average price assumption of $25.49/tonne is the sensitivity to watch, though no current market level is available to judge it against. The question that decides this project is whether the 7-year mine life is a hard geological limit or a conservative first cut. If the resource extends beyond the current plan, the NPV becomes a floor; if it does not, this is a well-financed, well-located project with a short, efficient life and no room for error.
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.