PERTH (miningweekly.com) – ASX-listed TNG has inked a binding life-of-mine (LoM) offtake and marketing agreement for all of the titanium dioxide pigment to be produced at its Mt Peake vanadium/titanium/iron project, in the Northern Territory.
“This is a really exciting milestone for TNG and marks the formalisation of our strong relationship with DKSH, one of the world’s leading market expansion services providers,” said TNG MD and CEO Paul Burton.
“We have now converted the previously announced binding term sheet with DKSH into a binding offtake agreement within the timeframe that we set, which is a great achievement for TNG, our shareholders and the Mt Peake project.”
DKSH will purchase up to 150 000 t/y, or 100%, of the titanium dioxide pigment, on a free-on-board basis to distribute globally, excluding to the Iberian Peninsula and European Nordic countries.
TNG will initially produce a high-durability pigment for the outdoor coating industry, which represents the largest pigment market, before expanding to other high-value niche markets.
The company already has binding LoM offtake agreements in place for its vanadium with Korean group Woojin, and binding terms for the Mt Peake iron products with Gunvor.
“With our final environmental assessment and permitting milestone also making strong progress, the completion of this binding offtake agreement will add significant momentum to our funding and commercialistion strategy for Mt Peake,” said Burton.
“We are also working on signing final binding offtake agreements over the coming months for both our vanadium pentoxide and iron products. Together with the front-end engineering and design work currently under way, these agreements will effectively underwrite our funding strategy for Mt Peake.”