PERTH (miningweekly.com) – ASX-listed Strandline Resources has signed a binding sales contract with China’s Maoming Ubridge Group Mineral Industry Company for all the ilmenite to be produced at its Fungoni project, in Tanzania, over the life of the project.
MD Luke Graham said on Tuesday that establishing this strategic offtake relationship with Maoming represented another important milestone for Strandline, ensuring the company remained on track to commercialise what was the first in its pipeline of outstanding mineral sands assets in Tanzania.
“The agreement provides a strong endorsement of the Fungoni project and the high-quality of the chloride ilmenite, which will be produced over the life of the mine.”
Fungoni’s ilmenite production is expected to generate about 28% of the project’s total revenues, with about 62% of revenues generated from zircon-monazite product, and about 10% from rutile production.
Strandline in January signed a binding offtake agreement for the full zircon-monazite product to be produced at the Fungoni mine, after reaching an agreement with China’s Hainan Wensheng High-Tech materials.
Graham told shareholders that sales discussions for the rutile product were now well under way.
The $30-million Fungoni project is expected to produce 302 300 t of saleable mineral sands product for delivery over the six-year mine life, generating life-of-mine revenues of $168-million.
“With the environment certificate already received for the project, Strandline is now awaiting approval of its mining licence from the Tanzanian Mining Commission, at which time the project funding can be finalised,” Graham said.