Switerland-based commodities trader Gunvor will buy the remaining 40pc stake in Australian resources developer TNG’s vanadium pentoxide production at TNG’s Mount Peake titanium-vanadium-iron project in the Northern Territory. Gunvor will purchase the vanadium pentoxide for global marketing and distribution.
The agreement complements an existing offtake arrangement with South Korean ferro-vanadium firm Woojin for 60pc of Mount Peake’s vanadium pentoxide output, TNG said.
TNG intends to produce around 6,000 t/yr of high purity vanadium pentoxide from Mount Peake’s Tivan processing facility to be located in Darwin.
The company already has a binding offtake deal with Swiss-based DiethelmKellerSiberHegner (DKSH) for 100pc of the project’s titanium dioxide product — equivalent to up to 150,000 t/yr — for global distribution, as well as a binding agreement with Indian resources firm Vimson for the project’s iron oxide output, equivalent to up to 500,000 t/yr of iron oxide fines.
“The execution of this agreement with Gunvor completes the company’s offtake arrangements and is a major milestone underpinning the commercial strategy for Mount Peake,” TNG said. This includes financing and development that estimated pre-production capital expenditure at A$824mn ($585mn).
Mount Peake has a mineral resource of 160mn t grading 0.28pc vanadium pentoxide, 5.3pc titanium dioxide and 23pc iron oxide. It is expected to have a mine life of around 37 years.
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