Name of the Project
Thunderbird mineral sands project.

Location
The project is located near Derby, in Western Australia.

Client
Sheffield Resources.

Project Description
A bankable feasibility study (BFS) has demonstrated a financially robust and technically strong project with a 42-year mine life. The BFS is underpinned by one of the world’s largest and highest-grade zircon- and ilmenite-rich mineral sands ore reserves, totalling 680.5-million tonnes grading 11.3% in heavy minerals.

The BFS is based on a conventional dozer trap mineral sands mining and processing operation involving an initial 8.5-million-tonne-a-year throughput (single mining unit), doubling to 17-million tonnes a year in Year 5 through a second mining unit and processing stream.

The first stage of the project is expected to produce more than 500 000 t/y of saleable product and the second stage more than one-million tonnes of saleable product a year, with a life-of-mine average of about 800 000 t/y.

Over its mine life, the project is expected to deliver an estimated 761 000 t/y of premium zircon, 68 500 t/y of zircon concentrate, 387 800 t/y of ilmenite and 229 800 t/y of titanomagnetite.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 10% discount rate, of A$676-million and an internal rate of return of 25%.

Value
Stage 1 capital has been estimated at A$463-million, and a transition from a build, own operate model to infrastructure ownership is expected to result in a further increase of about A$65-million.

Stage 2 is expected to cost A$195-million.

Duration
The first stage is expected to start in 2019 and end in 2023. Stage 2 is expected to start in 2024.

Latest Developments
Sheffield Resources has struck a liquefied natural gas (LNG) supply agreement with Woodside Energy and Energy Developments (EDL) at is Thunderbird project.

The 15-year supply agreement will result in Woodside and EDL delivering 1 950 TJ/y of LNG to the Thunderbird project.

The LNG will be supplied from Woodside’s Pluto LNG truck-loading facility near Karratha and transported to the Thunderbird LNG storage facility by a newly formed joint venture (JV) between Woodside and EDL. The JV will own and operate a purpose-built road tanker fleet to deliver the LNG to Thunderbird.

“We are extremely pleased with the level of support shown by Woodside and EDL in delivering a low-cost, long-term energy solution for Thunderbird,” Sheffield MD Bruce McFadzean has said.

“The project is now fully permitted and construction-ready, with offtake and financing agreements in place. We look forward to continuing our relationship with Woodside and EDL as we move towards development during 2019.”

Meanwhile, Sheffield Resources has started the hunt for a development partner for the project.

The company has appointed global investment bank UBS AG, which will assist Sheffield in considering third-party strategic partners to develop the Thunderbird project.

Key Contracts and Suppliers
GR Engineering (design and construction of mineral processing plant, as well as the supporting infrastructure).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sheffield Resources, tel +61 8 6555 8777, fax +61 8 6555 8787 or email info@sheffieldresources.com.au.