PERTH (miningweekly.com) – ASX-listed TNG has inked a term sheet for a life-of-mine offtake agreement for the entire high purity iron-ore product to be produced at the Mt Peake vanadium/titanium/iron project, in the Northern Territory.
Under the binding term sheet with Indian mining conglomerate Vimson Group, 100% of the iron product planned at Mt Peake would be purchased on a free-on-board basis for a fixed commission.
TNG is expected to produce around 500 000 t/y of iron oxide fines from its TIVAN processing facility, alongside high-purity vanadium pentoxide and titanium pigment products.
The company earlier this week signed a binding term sheet with commodity trader Gunvor over a potential 40% of the planned 6 000 t/y of vanadium pentoxide to be produced at Mt Peake.
TNG MD and CEO Paul Burton on Thursday said that the binding term sheet with the Vimson Group represented the final component of an already-impressive portfolio of tier one offtake arrangements spanning all three high-value products to be delivered from the TIVAN refinery.
“Coming hard on the heels of our recent agreement with Gunvor, the signing of this binding term sheet means that the forecast Mt Peake production is now fully under contract, strongly supporting a move into the financing and execution stage.
“Achieving this outcome in the current challenging global market environment is a solid achievement by our team and is testament to the project’s quality, scale and robustness.”