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- Sheffield Resources (SFX) confirms construction of the Thunderbird project in northern WA is more than 50 per cent complete
- After securing a $315 million senior loan facility and executing a final investment decision, the Kimberley Mineral Sands joint venture has begun installing steel structures
- Long lead items have also been delivered to the site and power generation facilities are reportedly progressing well
- The joint venture has been granted environmental approval to use the Port of Broome as a second bulk products logistics route, in addition to the Port of Derby
- Company shares are down 4.35 per cent to close at 55 cents
Sheffield Resources (SFX) has confirmed construction of the Thunderbird project in northern WA is more than 50 per cent complete.
The project is operated by Kimberley Mineral Sands, a joint venture (JV) company between Sheffield Resources and Yansteel, a subsidiary of Chinese steel manufacturer Tangshan Yanshan Iron and Steel.
The parties have agreed to develop the project in two stages, the first concept is for a 10.4 megaton per year mine and process plant producing a zircon rich, non-magnetic concentrate and low temperature roasting ilmenite.
In stage two, the feed rate is proposed to double to target 2170 tonnes per hour in the fifth year of operations.
Last month, the joint venture released a final investment decision to proceed with stage one development.
The decision followed the financial close of a combined $315 million senior loan facility from Northern Australia Infrastructure Facility and a related entity of Orion Mineral Royalty Fund.
Now, Sheffield reported construction activities are “progressing well” with steel installation underway and long lead items delivered to site.
Power generation facilities are also reportedly progressing well, as is construction of a tailings storage facility, supported by local contractors.
The JV has also secured a second export pathway after the Environmental Protection authority approved its application for bulk product export from the Port of Broome.
This adds to an existing logistics arrangement with the Port of Derby, as the JV works towards first customer deliveries from Thunderbird in quarter one of 2024.
JV partner and ilmenite offtake partner Yansteel has signed a binding offtake agreement for 100 per cent of the magnetic concentrate.
Yansteel is in the process of constructing a vertically integrated complex in China.
SFX shares were down 4.35 per cent to close at 55 cents.
