PERTH (miningweekly.com) – Joint venture (JV) vehicle Kimberley Mineral Sands (KMS) has inked a port access agreement for the Thunderbird mineral sands project, in Western Australia.
ASX-listed Sheffield Resources, which holds a 50% interest in the JV alongside partner Yansteel, said on Tuesday that the agreement would span a minimum period through to mid-2040, and provided KMS with long-term access to port infrastructure and a bulk handling facility at the Port of Derby.
Infrastructure at the Port of Derby was previously used for the export of base metal concentrates and is suited to the export of mineral sands products.
“We welcome the support from the Shire of Derby/West Kimberley in establishing this agreement with KMS which enables the export of products from Thunderbird via Derby. Construction activities at Thunderbird are advancing rapidly and the project remains on track for first production in early 2024,” said Sheffield Resources executive chairperson Bruce Griffin.
The agreement is subject to customary conditions precedent, including regulatory approvals and KMS providing a relevant notice toward the development of Thunderbird.
A recent bankable feasibility study (BFS) into the Thunderbird project simplified the process flowsheet, which resulted in lower capital costs and reduced margins, and estimated a mine life of 36 years with average sales of 1.42-million tonnes a year of mineral sands.
The new BFS estimated capital requirement of A$361-million for the Stage 1 operation, which would have a process rate of 1 085 t/h, with total funding requirements for Stage 1 estimated at A$484-million.