TNG has secured a life-of-mine off-take agreement for all of its iron ore from the Mount Peake vanadium-titanium-iron project in the Northern Territory with India’s VIMSON group.
VIMSON’s Singapore-based subsidiary V. M. Salgaocar & Bro. handle global distribution of TNG’s iron ore products at Mount Peake under the agreement, which includes freight, technical support, logistics, marketing and sales services.
TNG will sell 100 per cent of its iron ore products to V. M. Salgaocar & Bro., with Mount Peake forecast to produce around 500,000 tonnes of high grade iron ore fines per year.
TNG also has binding life-of-mine off-take agreements in place for Mount Peake’s other commodities, including for the sale of 100 per cent of its titanium dioxide pigment to Swiss group DKSH, and up to 60 per cent of its vanadium pentoxide to Korean group WOOJIN.
TNG managing director Paul Burton said the latest off-take agreement marks a third ‘landmark agreement’ at Mount Peake.
“The completion of a binding sales agreement for the third high-value product to be produced at Mount Peake marks another exciting and positive milestone for our shareholders, building on the landmark off- take agreements with the South Korean company WOOJIN for vanadium products, and with the Swiss company DKSH for titanium dioxide pigment,” he said.
“We are delighted to have signed this agreement with the VIMSON Group, a leader in the Indian resources sector and one of our major shareholders. VIMSON has similar values and growth strategies to TNG, and shares our vision of creating a world-class strategic metals project at Mount Peake that will produce a diversified suite of high-value products for global markets for many decades to come.
“We are also very pleased that we were able to execute this agreement in the current challenging global market environment, which is a solid achievement by our team and a testament to the quality and robustness of the Mount Peake project.”
The VIMSON Group is an Indian conglomerate with one of its primary interests being mineral resources.
It has been involved in mining, processing and transporting iron ore from its supply chain in India since 1952.
The Mount Peake project has a 37-year mine life and is expected to enhance the Northern Territory’s economy.