- Kimberley Mineral Sands (“KMS”) executes binding LNG supply agreement with Woodside/EDL Joint Venture (“WEJV”) for the Thunderbird Mineral Sands Project
According to the company’s website news release announcement to the Australian Securities Exchange (ASX) on September 26, 2022, Sheffield Resources Limited (“Sheffield” or “the Company”) (ASX: SFX) is pleased to advise that Kimberley Mineral Sands Pty Ltd (KMS) has executed a binding 5-year agreement, with the ability for the parties to extend for a further 5 years (Agreement) with Woodside Energy (LNG Fuels & Power) Pty Ltd, a subsidiary of Woodside Energy Group Ltd (Woodside) and EDLLNG Fuel to Power Pty Ltd (EDL) for the supply and delivery of approximately 650 terajoules per annum of liquefied natural gas (LNG) to the Thunderbird Mineral Sands Project (Thunderbird) in northern Western Australia.
LNG will be supplied by the WEJV from Woodside’s Pluto LNG Truck Loading Facility near Karratha in Western Australia and transported to the KMS LNG storage facility by WEJV. WEJV will own and operate a purpose-built road tanker fleet to safely and reliably deliver the LNG to Thunderbird.
The Agreement enables flexible, long-term gas supply to KMS for power generation. The Agreement is subject to a number of customary conditions precedent, including KMS making a final investment decision toward the development of Thunderbird, following the completion of project financing of Thunderbird.
Sheffield Resources Executive Chair, Mr Bruce Griffin said, “Sheffield is extremely pleased KMS have established a strong relationship with Woodside and EDL as they support KMS by delivering a low cost, efficient energy solution for Thunderbird. Thunderbird construction is continuing to advance at a significant pace and remains on track for first production in early 2024.”
This ASX announcement has been authorised for release by the Company’s Board of Directors.
For further information please contact:
Bruce Griffin Executive Chair
Tel: 08 6555 8777
info@sheffieldresources.com.au
Website:
ABOUT SHEFFIELD RESOURCES
Sheffield Resources Limited is focused on developing the world class Thunderbird Mineral Sands Project, located in north-west Western Australia, through its 50% investment in Kimberley Mineral Sands Pty Ltd (KMS).
ABOUT YANSTEEL
Yansteel is a wholly-owned subsidiary of Tangshan Yanshan Iron & Steel Co., Ltd, a privately owned steel manufacturer headquartered in Hebei, China producing approximately 10mt per annum of steel products and has annual revenues of ~A$6bn.
Construction of a 500ktpa integrated titanium dioxide processing facility including a titanium slag smelter has commenced by the company. This complex will consume the magnetic concentrate from Stage 1 of the Thunderbird Mineral Sands Project under a take or pay offtake agreement.
THUNDERBIRD MINERAL SANDS
The Thunderbird Mineral Sands Project (“Thunderbird”) is one of the largest and highest grade mineral sands discoveries in the last 30 years. The 2022 KMS Bankable Feasibility Study shows Thunderbird is a technically low risk Project, that generates strong cash margins from globally significant levels of production over a decades long mine-life.
Thunderbird will generate a high-quality suite of mineral sands concentrate products suited to market requirements. These products include a zircon concentrate and a magnetic concentrate that contains a high quality ilmenite suitable smelting into chloride slag or for manufacturing titanium dioxide pigment.
Thunderbird is located in one of the world’s most attractive mining investment jurisdictions and is well placed to deliver long term, secure supply of high quality products to a range of potential customers.
KIMBERLEY MINERAL SANDS
Kimberley Mineral Sands Pty Ltd, (KMS) is a 50:50 Joint Venture between Sheffield and Yansteel. The joint venture owns and is developing the Thunderbird Mineral Sands Project and adjacent tenements on the Dampier Peninsula.
KMS is governed by a four person Board of Directors with Sheffield and Yansteel each nominating two directors. Key Joint Venture decisions require unanimous approval of both shareholders. KMS operates as a standalone entity with its own management and employees.
