Strandline Resources managing director Luke Graham is confident the company will become a world-scale mineral sands producer after signing its final offtake agreement for the Coburn project in Western Australia.
The company has agreed to supply all of Coburn’s rutile production to titanium dioxide producer Venator Materials.
Rutile from the Coburn project is suitable for titanium dioxide pigment production, which is used in paints, coatings, inks, ceramics and plastic production.
Rutile is expected to provide 17-20 per cent of Coburn’s forecast revenue across five years.
Strandline has now secured more than 90 per cent of Coburn’s revenue through offtake contracts, giving a combined value of $850 million over five years.
Strandline managing director Luke Graham said the latest offtake agreement built further confidence in Coburn and its mineral sands products.
“With over 90 per cent of the project’s revenue now underwritten by binding sales contracts with major customers and a significant portion of the development funding secured via the NAIF loan, Strandline is on track to become Australia’s next world-scale mineral sands producer,” he said.
The company has secured 100 per cent of its ilmenite production in an offtake with Chermous in the United States and its zircon concentrate with Sanxiang Advanced Materials in China.
Its premium zircon offtake is split between Bitossi in Europe (50 per cent), Venator in the United States and Europe (30 per cent) and Chilches in Europe (20 per cent).
Strandline stated that Coburn’s remaining revenue stream of premium finished zircon (ceramic grade) was being held back for sale through spot market contracts.
The company has now received all key development approvals, product offtakes and major construction contractors for Coburn.
It also received a $150 million loan facility from the Northern Australia Infrastructure Facility (NAIF) for the Coburn development.