Image secures offtake deal for Boonanarring product

Image Resources has agreed to sell 100,000 tonnes of heavy mineral concentrate from the zircon-rich Boonanarring mineral sands project in Western Australia to a Chinese buyer.

The sales agreement with Shantou Natfort Zirconium and Titanium (Natfort) and zirconium distributor Guangdong Orient Zirconic Ind Sci & Tech will see Image Resources deliver multiple HMC shipments of 20,000 to 30,000 tonnes each across a three to five month period, starting this month.

Natfort is an existing offtake partner for Image, with the two companies having signed an offtake agreement for 70,000 tonnes of HMC last year.

“Once again our offtake partners have demonstrated their commitment to acquiring Image’s HMC by stepping up to purchase Image’s surplus inventory even under the current uncertain economic conditions,” Image managing director and chief executive Patrick Mutz said.

“We welcome the support, however we also look forward to expanding our sales network beyond our current offtake agreements, including, if achievable, broadening our customer base geographically.”

Image is progressing discussions with other potential buyers for its HMC.

The company has also secured itself against any unanticipated softening of the market by locking in prices of the 100,000 tonnes HMC to current market prices.

Demand for HMC, zircon and ilmenite softened in the first half of this year due to the COVID-19 pandemic.

The latest offtake is expected to monetise Image’s surplus inventory across the next three to four months and help the company meet its sales guidance for this year.

Image has achieved 64,000 tonnes of sales in the June quarter.

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