Critical minerals company Tivan (ASX: TVN) has signed a letter of intent with renewable energy provider Sun Cable to support its planned processing facility in the Northern Territory.
Sun Cable is developing one of the world’s largest solar generation, storage and transmission projects in the Northern Territory, known as the Australia-Asia PowerLink (AAPowerlink) project.
The project will combine a solar farm and battery storage facility with a 5000 kilometre transmission system to supply Darwin, Singapore and Asian markets with reliable and competitively-priced renewable electricity.
Tivan’s one-year deal with Sun Cable will progress commercial and technical discussions towards the potential offtake of up to 300 megawatts of renewable electricity from the project to the Tivan processing facility (TPF), located at the Middle Arm sustainable development precinct in Darwin.
Terms of the deal
Under the terms of the deal, Tivan and Sun Cable will work together to develop an indicative renewable energy supply and commercial strategy for the TPF.
The parties will collaborate to optimise the design, delivery and utilisation of supply and purchase arrangements from AAPowerLink to the TPF.
The supply of energy is subject to the parties subsequently agreeing and executing a formal power purchase agreement.
Important milestone
Executive chairman Grant Wilson said the deal was an important milestone for the Tivan, Sun Cable and the Northern Territory.
“As the first-moving public proponent at Middle Arm, we have an important interest in how it is shaped [and] by partnering with Sun Cable, we are endorsing and facilitating the provision of large-scale renewable energy to the precinct,” he said.
“This agreement marks the start of a strategic partnership reflecting philosophical alignment, natural synergies and a shared commitment to tackle some of the world’s most challenging and important problems… we expect Tivan and Sun Cable will put the Territory at the global forefront of critical minerals processing and the energy transition.”
Tivan’s projects
Tivan is focused on developing the Speewah vanadium-titanium-iron project in Western Australia and the Mount Peake vanadium-titanium-iron project in the Northern Territory.
The company acquired Speewah in February from King River Resources (ASX: KRR).
It hosts the largest reported vanadium-in-titanomagnetite resource in Australia and is believed to be one of the largest on a global scale, containing a measured, indicated and inferred resource of 4.7 billion tonnes at 0.3% vanadium oxide, 14.7% iron and 3.3% titanium oxide (at a 0.23% vanadium oxide cut-off grade).
Tivan plans to process magnetite concentrate from both projects at the centralised TPF.
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