Photo by: Bloomberg
PERTH (miningweekly.com) – Vanadium developer TNG has signed an agreement with Korean conglomerate Posco Engineering and Construction to help bring its flagship Mount Peake project, in the Northern Territory to the finishing line.
ASX-listed TNG reported on Friday that the memorandum of understanding (MoU) provided for strategic cooperation to complete and deliver the definitive feasibility study (DFS), and to consider the award of a contract for the engineering, construction and development of the project.
Under the MoU, Posco could also agree to assist in obtaining project financing through the Korean Export Credit Agency or Korean banks.
TNG MD Paul Burton said that the MoU with Posco was consistent with the company’s broader objective, which was to secure globally significant strategic and commodity partners to work alongside TNG in financing and developing its Mount Peake project.
“We have now clearly demonstrated our ability to attract blue-chip partners to work with us in the financing and delivery of the Mount Peake project,” he said.
The MoU with Posco followed shortly after the signing of a MoU with another Korean group, WOOJIN JIN.
Under that MoU, the two companies would form a strategic cooperation regarding offtake, marketing, technology exchange and other mutually beneficial agreements in relation to vanadium and other products from the Mount Peake project.
Burton pointed out that the MoU with Posco was nonexclusive, noting the possibility that other global strategic partners could become involved in the project as TNG pursued its goal of creating the foundation to build a strategic metals house.
TNG was currently advancing a staged DFS on the Mount Peake project. The company is aiming to start construction by 2014, with first production and exports slated for 2015.