The KGL (ASX:KGL) share price is up 11% today on news the copper producer has received government approval for its Jervois Project.
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At the time of writing, the KGL share price is trading up 11.32% at 29.5 cents.
What’s moving the KGL share price today
The company advised the project has gained Northern Territory Government approval after recent pre-feasibility studies (PFS) showed that the Jervois deposit would have a mine life of 7.5 years.
With the PFS completed and government approval obtained, KGL says it will now go ahead with executing its plans for the mine. The next phase will include project funding and marketing of the mine’s concentrate.
KGL Chair Denis Wood said that the government’s response represented a landmark approval for the company, and has put it in a good position:
Our current project planning takes into account the conditions attached to the government response, so this landmark approval provides an essential clearance for Jervois.
Jervois is exceptionally well placed to enter the world copper market as a supplier.
Demand is expected to increase strongly for copper in both emerging green energy and electric vehicles uses as well as traditional construction, electricity transmission, communication and consumer goods applications.
About the KGL share price
The KGL share price has delivered a return of around 20% for shareholders over a one-year period.
In September last year, the company upgraded its copper estimate for the Jervois project, saying that the copper grade from the mine had doubled from 1.07% to 2.03%.
In that announcement, the company also reported that contained copper in the mine had increased 30% to 426,200 tonnes.
The announcement sent the share price surging by more than 30% on the day.
At the current market price, KGL commands a market value of $90 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.