PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has inked a cornerstone ilmenite offtake memorandum of understanding (MoU) over its Thunderbird mineral sands project, in Western Australia.
The MoU with Chinese manufacturer CNNC Huayuan Titanium Dioxide Company covers some 45% of the estimated total volume of low temperature roast (LTR) ilmenite expected from Stage 1 of the Thunderbird project, and follows a succession of similar agreements executed for the zircon production from Thunderbird.
Sheffield MD Bruce McFadzean said on Monday that the latest MoU confirmed Sheffield’s high quality product capability when in production.
“The recently completed Thunderbird bankable feasibility study showed LTR ilmenite will generate 29% of the estimated project revenue. We look forward to concluding a binding offtake agreement with CNNC and establishing a long-term business relationship going forward.”
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.