PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has signed two offtake memorandums of understanding (MoUs) over future production from its Thunderbird project, in Western Australia.
“The MoUs have been signed with zircon consumers with a high standing in the industry, confirming Sheffield’s capability of supplying the global market with very high-quality products once in production,” said MD Bruce McFadzean.
He noted that the recent bankable feasibility study into the Thunderbird project confirmed that zircon would represent 62% of the estimated project revenues.
The MoUs were nonbinding and signed with European ceramics company CFM Minerals. The combined agreements represented up to around 20% of the estimated total volume of premium zircon to be produced from Stage 1 of the Thunderbird project.
The A$271-million Stage 1 development was expected to have an 8.5-million-tonne-a-year throughput, doubling to 17-million tonnes a year in year five of operation, with the investment of a further A$195-million.
Over its 42-year mine life, Thunerbird 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.
McFadzean said on Tuesday that, in conjunction with the MoU arrangements, Sheffield was also working with its financial adviser to progress funding for project development.
Edited by: Creamer Media Reporter
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