Sheffield Resources has secured an agreement with Indian ceramics company Ruby Ceramics for the sale of premium zircon from its Thunderbird mineral sands project in Western Australia.
Under the agreement Ruby Ceramics will purchase 6000 tonnes of premium zircon annually for an initial three-year period, with annual contract extensions afterwards.
The 6000 tonnes of premium zircon represents around 12 per cent of the estimated total volume of premium zircon to be produced from Stage 1 of Thunderbird.
Sheffield managing director Bruce McFadzean said the agreement supports the Thunderbird project and the product it will generate over its 42 year mine life.
“We welcome this relationship with Ruby and remain steadfast in delivering our offtake and funding objectives over the coming months,” he said.
The company will continue negotiations with other parties that have signed non-binding memorandums of understanding (MOUs) for the sale of premium zircon, zircon concentrate and low temperature roast (LTR) ilmenite.
These agreements collectively account for around 70 per cent of premium zircon, 45 per cent of zircon concentrate and 45 per cent of LTR ilmenite products from Stage 1 of Thunderbird.