Darling Range Operations (Huntly & Willowdale) Feasibility Study: $122M NPV Over a 9-Year Mine Life
Alcoa Corporation's Darling Range Operations (Huntly & Willowdale) in Western Australia, Australia (southwest of Western Australia, near Pinjarra and Waroona) has a Feasibility Study outlining an after-tax NPV of $122M. The mine plan runs 9 years at about 36.22 Mt bauxite (LOM total 326.0 Mt) per year.
Alcoa Corporation's Darling Range Operations (Huntly & Willowdale) has reported Feasibility Study results for the bauxite project in Western Australia, Australia (southwest of Western Australia, near Pinjarra and Waroona). 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/t (bauxite).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 9 years. Average annual production is approximately 36.22 Mt bauxite (LOM total 326.0 Mt). Average head grade is 29.1% AL (Proven) / 31.9% AL (Probable); product average AL grade ~33%.
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 | 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 494 projects we track
- Mine life
- 9yrs
- Study price assumption
- Average LOM Price Assumption $21.46/t (bauxite)
A nine-year mine life is the first thing to weigh here, and it is modest: enough to justify a feasibility-level build, not enough to treat the asset as a perpetual cash generator. This is a producing bauxite operation in Western Australia's southwest, near Pinjarra and Waroona, a mining-friendly jurisdiction that removes much of the permitting and sovereign noise that dogs comparable projects elsewhere. The study is a feasibility, the build-ready estimate carrying roughly a plus or minus 15% band, so its numbers deserve more weight than a scoping exercise would. But the returns themselves are unremarkable: an after-tax NPV of $122M ranks higher than only 15% of the 494 projects we track across all commodities. That is the honest framing. This is not a project that stands out on economics; it is one that sits in the bottom sixth of the peer set, and the value of the analysis is placing it there precisely rather than dressing it up.
The constraint that matters most is scale, and it cuts in an unusual direction. The NPV is well below the company's market cap, roughly currency-adjusted, against a US$11.62B large-cap. That gap is not a hidden-value signal in the way it would be for a junior sitting on a single asset. This is one of 13 projects we track for the company, a diversified portfolio, so a $122M NPV is a rounding error against the whole. The market is not mispricing a flagship; it is pricing a company whose value rests elsewhere. For an investor, this project is incremental, not transformative, and should be underwritten as such.
The remaining sensitivity is the study's own price assumption: an average life-of-mine bauxite price of $21.46/t. With a nine-year life and a modest NPV, the economics turn on where that assumption lands over the full period. The question that decides whether this works is whether a nine-year, $122M asset earns its place in a portfolio of 13 when capital and management attention are finite.
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.