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Major milestones struck at Thunderbird

12th November 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has awarded a A$336-million fixed-price, lump sum engineering, procurement and construction (EPC) contract to fellow-listed GR Engineering to design and construct its Thunderbird mineral processing plant, as well as the supporting infrastructure, in Western Australia.

Sheffield on Monday told shareholders that the EPC contract covered some 80% of Thunderbird’s estimated A$463-million Stage 1 capital cost, and will cover the design and construction of a 7.5-million-tonne-a-year mineral processing plant.

Based on the construction and commissioning schedule, first zircon products will be delivered during commissioning in the last quarter of 2020, and first ilmenite product is expected in the second quarter of 2021.

Meanwhile, Sheffield on Monday also announced a $175-million fully underwritten, syndicated facility agreement with Taurus Mining Finance Fund and Taurus Mining Finance Annex Fund, for a seven-year term loan.

Sheffield MD Bruce McFadzean told shareholders that these agreements substantially de-risked the Thunderbird project, and placed Sheffield in a strong position to move into construction.

“We now have a full EPC contract with one of Australia’s leading process engineering companies, with extensive experience in Western Australia, and in the deliver of mineral sands projects. Additionally, we have executed $175-million of senior debt financing with Taurus, one of the world’s premier mining finance funds.”

McFadzean said that the Taurus facility agreement provided certainty of funding for the development of Thunderbird, and included the expanded Northern Australia Infrastructure Facility (NAIF) loan facilities.

“The addition of the federal government support through the A$95-million NAIF funding provides financial assistance towards the development of key infrastructure including power generation, roads and port facilities associated with Thunderbird.

“We acknowledge and appreciate the collaborative manner in which both Taurus and NAIF have enabled funding for Thunderbird. The NAIF loan facilities are very competitive, with long dated tenor enabling Sheffield to own strategic infrastructure and significantly reduce our operating costs by a minimum of A$7.5-million per annum over the 42-year life-of-mine.”

McFadzean pointed out that the company had now secured A$335-million of loan facilities to enable the project to proceed.

“Securing the loan facilities, combined with finalization of the fixed price, lump sum EPC contract, in conjunction with completion of permitting, collectively build on the recent milestones achieved by Sheffield and pave the way for construction of Thunderbird to commence in the new year, following the wet season.

“As we close in on development of Thunderbird, we will continue to progress all funding options including ongoing discussions with potential strategic partners,” McFadzean said.

Edited by Creamer Media Reporter

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