Hastings Technology Metals Ltd. said March 11 that its board approved a revised development capital cost for the Yangibana rare earths project in Western Australia of about A$427 million, higher than the previously estimated A$335.3 million envisaged under the 2017 definitive feasibility study.

The increased cost estimate — which was attributed to a board-mandated decision to source tier-one equipment suppliers, as well as higher construction labor wages — resulted in a reduction in posttax net present value, discounted at 8%, to A$447 million, with a 28% internal rate of return and a 2.6-year payback period.

Under the 2017 study, NPV, discounted at 8%, stood at A$466 million, with a 78% internal rate of return and a 2.3-year payback period.

Phase one of the two-phased construction stage began in the second half of 2018, with phase-two construction to coincide with the grant of final environment licenses for the operation by the third quarter.