Osmond Resources has established an initial economic framework for its Orión rare-earths, zircon and titanium project in Andalucía, Spain, with a scoping study estimating a post-tax net present value (NPV) of US$2.31 billion. The development concept outlines a proposed underground mining operation, with further drilling, metallurgical testing and pre-feasibility studies planned.
The study estimates an unlevered post-tax internal rate of return (IRR) of 145% and initial capital expenditure of approximately US$299 million, including a 25% contingency. Average annual EBITDA is projected at around US$531 million, while the model indicates a potential payback period of approximately six months after production begins. The preliminary development plan envisages a 2 million-tonne-per-year underground mine using room-and-pillar mining methods over an initial mine life of nine years.
Proposed Production and European Supply Potential
The first-stage operation is projected to produce approximately 42,300 tonnes of monazite concentrate annually, alongside 68,000 tonnes of zircon concentrate and 109,000 tonnes of mixed titanium concentrate. According to Osmond’s estimates, the proposed output could account for approximately 6% of projected European Union neodymium-praseodymium (NdPr) demand in 2030, while also supplying significant proportions of regional zirconium and titanium requirements.
The production profile would combine rare-earth-bearing monazite with zircon and titanium concentrates. The project’s economic model relies in part on the recoveries, concentrate payabilities and by-product credits associated with zircon and titanium production.
Main Seam Resource and Mineral Grades
Orión currently has a maiden mineral resource of approximately 60 million tonnes. Its high-grade Main Seam contains an estimated 49.7 million tonnes, grading 10.29% titanium dioxide (TiO₂), 3.42% zirconium dioxide (ZrO₂) and 7,139 parts per million total rare-earth oxides (TREO). The resource base will require further drilling and conversion into higher-confidence categories as the project advances. Osmond plans to conduct a 13-hole drilling programme aimed at upgrading and expanding the existing resource.
The company has not yet declared an Ore Reserve. In addition, approximately 29% of the production target is based on Inferred resources, leaving an element of geological uncertainty in the scoping study’s production assumptions.
Metallurgical Work and Economic Study Limitations
The current economic assessment remains at scoping-study level, with the initial capital estimate carrying an accuracy range of approximately ±35%. The projected financial results therefore remain subject to further technical evaluation and refinement. Metallurgical recoveries, concentrate payabilities and revenue from zircon and titanium by-products are important assumptions underpinning the development model. These parameters will be examined through more advanced metallurgical work as Osmond progresses towards a pre-feasibility study.
The company plans to undertake PFS-level metallurgical testing and downstream rare-earth processing studies with Técnicas Reunidas, alongside the planned drilling programme. The work is intended to support further resource definition and evaluation of the proposed processing route.
European Critical-Materials Initiatives and Project Development
Osmond is seeking recognition and potential support for Orión through Spanish and European critical-material initiatives. The company is also considering a secondary listing in Madrid. The project now has an initial mine-development model based on underground production, multiple mineral concentrates and a proposed initial capital investment of approximately US$299 million. Further work will focus on resource conversion, metallurgical performance, permitting and financing as the project advances beyond the scoping-study stage.
