PERTH (miningwekly.com) – The Australian Foreign Investment Review Board (FIRB) has approved a proposed A$130-million joint venture (JV) agreement over the Thunderbird mineral sands project, in Western Australia.

ASX-listed Sheffield Resources in August inked a non-binding term sheet with Yansteel to form JV at its Thunderbird project, under which Yansteel will invest A$130.1-million to acquire a 50% stake in the project.

The companies have also executed a take-or-pay offtake agreement for all of the ilmenite produced at the Stage 1 project.

Sheffield on Tuesday told shareholders that Yansteel had been advised by the FIRB that the Commonwealth had no objections to the planned investment or JV.

“The advice from FIRB is a positive step for Yansteel, Sheffield and the development of the Thunderbird mineral sands project,” said Sheffield MD Bruce McFadzean.

“It is a significant event for shareholders and the Kimberley community, demonstrating state and federal government’s support for continued investment in the local resources sector.”

Sheffield and Yansteel are targeting finalising the formal JV agreements over the coming weeks, after which a bankable feasibility study will be completed ahead of concluding project financing arrangements, before taking a final investment decision on the project in 2021.

The JV parties have agreed that the development concept for the Stage 1 project would be a 10.4-million tonne a year mine and process plant producing a zircon-rich non-magnetic concentrate and ilmenite. The parties will agree on the final project scope, complete a bankable feasibility study and secure project financing.

The A$130.1-million project equity investment, along with the A$12.9-million funding under the share placement, combined with existing project financing, is expected to deliver a fully funded project.