PERTH (miningweekly.com) – ASX-listed Sheffield Resources has inked additional binding offtake agreements for zircon concentrate at its Thunderbird mineral sands project, in Western Australia.
The company on Monday told shareholders that an agreement with China’s Hainan Wensheng High-Tech Materials Company would see the supply of 25 000 t/y of zircon concentrate, in addition to the offtake agreement struck in 2017, for the supply of 27 000 t/y of zircon concentrate.
“We are delighted to strengthen our relationship with Wengshen. We’ve spent a lot of time fostering relationships with international offtake partners, so its very encouraging to see one of the largest mineral sands processors in the world sign up for additional volume,” said Sheffield MD Bruce McFadzean.
“With this agreement finalised, our marketing team has now secured offtake for 100% of all Stage 1 zircon and ilmenite production volumes at Thunderbird, significantly reducing market and revenue risk.”
The Stage 1 development is expected to cost some A$463-million to develop, and over its 42-year mine life, Thunderbird is expected to deliver 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.
Sheffield is currently undertaking an update of the bankable feasibility study at Thunderbird, targeting a 38% increase in the ore mining rate, the deferral of the low temperature roast ilmenite circuit and an increase in zircon production, which is expected to deliver lower capital and operating costs, lower construction risk and a financially stronger project.