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The mineral sands market remains very strong with current spot prices at least 25 per cent above the expected prices found in the Coburn definitive feasibility study (DFS) released in June 2020.

The DFS forecast an average annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of $104 million over the estimated 22.5-year initial life-of-mine.

“We have continued to achieve positive outcomes on the project, with key aspects of design, procurement and construction proceeding to plan,” Strandline managing director Luke Graham said.

“Our success to date means we are well placed to capitalise on what is a very strong market for mineral sands, with buoyant global demand and supply limited by the lack of investment in new projects in recent years.

“The strength of the market is reflected in the fact that spot prices for zircon and titanium feedstocks are at least 25 per cent above those used in the Coburn DFS.”

Detailed engineering design is largely complete across the project, procurement of materials and equipment are advancing strongly, and all major construction contractors have now mobilised to site, with the latest being the power station and overhead powerline contractors.

Strandline is focussed on managing the risk factors associated with development including proactively managing health, safety and environment risks, contractor performance and the potential impacts of COVID-19.

The Coburn project is set to capitalise on its robust margins, the strengthening mineral sands commodity pricing outlook, its tier-one location and the growing demand for critical minerals.