Sheffield signs another offtake MoU

PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has signed another memorandum of understanding (MoU) for the future sale of zircon from its Thunderbird project, in Western Australia.

The nonbinding MoU with India’s Sukaso Ceracolors represented up to 20% of the estimated total volume of zircon to be produced from Stage 1 of the Thunderbird operation, Sheffield said on Monday.

Sheffield earlier this month inked two nonbinding offtake MoUs representing a combined 20% of the estimated Stage 1 zircon production from Thunderbird.

The A$271-million Stage 1 development is expected to have an 8.5-million-tonne-a-year throughput, doubling to 17-million tonnes a year in the fifth year of operations, with the investment of a further A$195-million.

Over its 42-year mine life, Thunderbird is expected to deliver some 76 100 t/y of premium zircon, 68 500 t/y of zircon concentrate, 387 800 t/y of ilmenite and 229 800 t/y of titano-magnetite.

Sheffield MD Bruce McFadzean said that the relationship with Sukaso was a welcome one.

“Establishment of these important relationships speak volumes for the scale and quality of Thunderbird across the expected 42-year life of mine. Consumers are clearly positioning themselves to identify potential long-term sources of supply for premium zircon product, and the MoU signed with Sukaso confirms Thunderbird’s capability and unique market position as a future source of very high quality products.”