PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has inked binding documentation with Yansteel to form a joint venture (JV) at its Thunderbird project, in Western Australia.

The two companies last year signed a non-binding term sheet to form a JV, under which Yansteel will invest A$130.1-million to acquire a 50% stake in the project.

The companies on Wednesday announced that they have now started a process to finalise the remaining conditions precedent, including lender agreement and the receipt of the A$130-million investment from Yansteel, in the hopes of completing the JV agreement over the coming weeks.

Once the JV has been formed, a final bankable feasibility study will be completed on the Thunderbird project, ahead of concluding project finance arrangements, with a final investment decision expected during 2021.

“This is another exciting step forward for Thunderbird, our partnership with Yansteel, and for Sheffield Resources’ investors and stakeholders,” said Sheffield MD Bruce McFadzean.

“In Yansteel, we have a partner that is equally committed to the project and we are both looking forward to a long and productive relationship. What is particularly pleasing is that both parties are committed to creating hundreds of jobs in the Kimberley, for decades to come.”

Previous estimations on the Thunderbird project had placed a price tag of A$463-million on the Stage 1 development, which would see delivery of 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 over a 42-year mine life.

However, Sheffield last year announced that it would re-think its approach to the Thunderbird project, and would change the scale and product mix at Thunderbird to reduce capital costs and provide a more readily financeable project.

A small range of development strategies were subsequently identified, including a zircon-rich product stream in conjunction with alternate ilmenite streams.