Strandline Resources has secured offtake commitments for 100 per cent of production from the Coburn mineral sands project in Western Australia after signing an agreement with Mario Pilato BLAT S.A (Pilato).
Pilato is based in Europe and provides raw material products for the ceramics, glass, refractory and investment casting markets.
The offtake will include 10,000 tonnes per annum of premium zircon product for an initial two years.
Strandline stated the offtake will provide 8-9 per cent of Coburn’s annual revenue.
Strandline managing director Luke Graham said the agreement has locked in all of Coburn’s initial production.
“Importantly, the agreement ensures that 100 per cent of Coburn’s initial production has been underwritten by binding offtake contracts with some of the world’s largest mineral sands consumers, de-risking the project, providing certainty in revenue streams and maximising returns to shareholders,” he said.
“The Coburn project is set to capitalise on its robust margins, supportive market tailwinds, its tier-1 location, its high-calibre contracting partners and the growing demand for critical minerals.”
Strandline has signed six binding offtake contracts for Coburn’s initial production, which are expected to be worth a combined $200 million.
The Coburn project will be one of the world’s largest mineral sands projects, producing zircon, titanium and rare earths.
Coburn is fully funded, with Strandline anticipating first production of heavy mineral concentrate in the December 2022 quarter.
The site has a projected revenue of $4.4 billion across its 22.5-year mine life.
However, Strandline believes the mine life could be extended beyond the projected period.
In May, Strandline commenced construction of Coburn after the company reached a final investment decision for development.