Photo by: Bloomberg
PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has signed its second binding offtake agreement over its Thunderbird mineral sands project, in Western Australia.
The agreement with India’s largest ceramic raw materials supplier Sukaso Ceracolors Ceramics provides for a minimum supply of 12 000 t of premium zircon for an initial five-year period, with yearly contract extensions thereafter.
The agreement represents about 24% of the estimated total volume of premium zircon to be produced from the Stage 1 production at Thunderbird. Along with an earlier binding agreement signed with Ruby Ceramics, it accounts for 36% of the forecast Stage 1 production.
“We welcome the relationship with Sukaso and this agreement continues to demonstrate the high quality of premium zircon product to be generated from the Thunderbird project over the 42-year life-of-mine,” said MD Bruce McFadzean.
“With references to the earlier signed memorandum of understanding, which was signed in April 2017, Sukaso requested additional volume from Thunderbird over the contract period. We were able to accommodate this, and we are highly encouraged by Sukaso’s commitment to the project.”
McFadzean said that with more than one-third of the premium zircon from the Stage 1 operation now under binding agreements, the company would continue to deliver on its offtake and funding objectives over the coming months.
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.