Sheffield signs first offtake agreement
PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources on Tuesday announced its first binding offtake agreement over its Thunderbird project, in Western Australia.
Under an offtake agreement with Indian ceramics company Ruby Ceramics, Sheffield would supply 6 000 t/y of zircon from the Thunderbird project, which represented around 12% of the project’s estimated total volume during the Stage 1 operations.
The contract will span an initial three-year period, with yearly contract extensions thereafter.
“The agreement with Ruby Ceramics provides a strong endorsement of Thunderbird and the quality of premium zircon product to be generated from the project over the 42-year life-of-mine,” said Sheffield MD Bruce McFadzean.
“This maiden binding offtake agreement is a milestone achievement for Sheffield and is an important derisking step as we progress project development.”
The 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.
McFadzean said that Sheffield was continuing negotiations to sign further offtake agreements with parties that have already executed nonbinding memorandums of understanding. These collectively account for an estimated 70% of zircon, 45% of zircon concentrate and 45% of ilmenite products from the Stage 1 Thunderbird operation.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation