Sheffield/Yansteel JV gets under way

The two companies last year inked a non-binding term sheet to form a JV, under which Yansteel will invest A$130.1-million to acquire a 50% stake in the mineral sands project.

With lender agreement in support of the transaction, and Sheffield’s receipt of Yansteel’s A$130-million investment to acquire a 50% interest in the JV vehicle, the project is now jointly owned by both companies.

Sheffield MD Bruce McFadzean said that the completion of the transaction was a defining moment for the company and a major milestone for the Thunderbird project.

“Our partnership with Yansteel is a great moment for Thunderbird, the people of the Kimberley and for Sheffield Resources’ investors and stakeholders.”

The JV, know as Kimberley Mineral Sands (KMS), will now complete a final bankable feasibility study for the Thunderbird project, ahead of concluding project finance arrangements over the coming months, with an expected final investment decision expected during 2021.

Previous estimations on the Thunderbird project had placed a price tag of A$463-million on the Stage 1 development, which would see delivery of 76 100 t/y of premium zircon, 68 500 t/y of zircon concentrate, 387 800 t/y of ilmenite and 229 800 t/y of titano-magnetite over a 42-year mine life.

However, Sheffield last year announced that it would re-think its approach to the Thunderbird project, and would change the scale and product mix at Thunderbird to reduce capital costs and provide a more readily financeable project.

A small range of development strategies were subsequently identified, including a zircon-rich product stream in conjunction with alternate ilmenite streams.

Meanwhile, Sheffield on Friday announced the appointment of Gordon Cowe to the board as an independent non-executive director.

With the formation of the JV, founding directors Will Burbury and David Archer have stepped down from the Sheffield board, as previously flagged.