Strandline sets sights on Coburn, Fungoni project construction

Strandline Resources is on the verge of commencing construction at the Coburn and Fungoni mineral sands projects in Western Australia and Tanzania.

The company received tenders for major construction packages including the process plant infrastructure, bulk earthworks and village.

Strandline has appointed independent technical experts to conduct finance due diligence, which is now under way.

The Northern Australia Infrastructure Facility (NAIF) has also continued its evaluation of a debt facility for the Coburn development.

Strandline flagged a potential increase in recoveries and production of higher-value zircon and rutile final product streams after conducting more metallurgical bulk tests.

The Coburn project has an initial mine life of 22.5 years, with a further 15 years of potential production targets identified.

At the Fungoni project in Tanzania, Strandline is yet to finalise project financing and government approvals.

This includes finalising a $US26 million ($40.3 million) facility agreement with Nedbank and Tanzanian Government’s 16 per cent interest in the project company.

Strandline stated the development of Fungoni would pave the way for a succession of mineral sands projects along the coastline of Tanzania, as well as establish a new industry in the country.

It secured an engineering, procurement and construction (EPC) contract with GR Engineering Services, underpinning a 12-month build phase to first production.

At the joint venture (JV) project in southern Tanzania, Rio Tinto will no longer continue sole-funding exploration under its agreement with Strandline.

Strandline managing director Luke Graham said the company had benefitted significantly from working with Rio Tinto in southern Tanzania over the past few years.

“The relationship has delivered some very strong outcomes in the field and we look forward to exploring other strategic options with Rio Tinto and others in the future as our business continues to evolve into a major player in the global mineral sands market,” Graham said.

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