- Sheffield Resources’ (SFX) joint venture company, Kimberley Mineral Sands (KMS), secures three five-year offtake agreements
- The offtake deals will see the company sell a combined 170,000 tonnes of zircon concentrate per year to three China-based zircon concentrate processors
- The zircon product will be sourced from the Thunderbird Mineral Sands Project in WA
- KMS is seeing strong demand for zircon concentrate and expects to secure offtakes for the remaining product under stage one of the Thunderbird Project
- Sheffield ended the day with shares trading up 1.49 per cent at 34 cents
Sheffield Resources’ (SFX) joint venture company, Kimberley Mineral Sands (KMS), has signed amendments to three zircon offtake agreements.
The five-year offtake deals will see the company sell a combined 170,000 tonnes of zircon concentrate per year to three major zircon concentrate processors based in China.
The zircon product will be sourced from the Thunderbird Mineral Sands Project in Western Australia.
In 2019, Sheffield Resources completed a bankable feasibility study which showed Thunderbird to be a technically low-risk, modest capex mineral sands project that generates strong cash margins over a 37-year mine life.
The project will produce zircon and zircon concentrated products, and ilmenite which is suitable for making titanium dioxide pigment or smelting into chloride slag.
“Sheffield is pleased with the support shown by existing zircon customers for the Thunderbird Project. KMS has approximately 75 per cent of its zircon concentrate for stage one under binding agreements with three respected and well-established zircon concentrate processing groups,” Executive Chairman Bruce Griffin said.
Including the low temperature roast ilmenite offtake deal with Sheffield’s joint venture partner, Yansteel, KMS has secured offtake contracts for about 80 per cent of the revenue from stage one of the Thunderbird Project.
“KMS is seeing strong demand for the Thunderbird zircon concentrate product and they are engaged with additional counterparties seeking offtake agreements for the 50,000 tonnes of remaining uncontracted zircon concentrate from stage one,” Mr Griffin concluded.
Sheffield ended the day with shares trading up 1.49 per cent at 34 cents.