Virus forces TNG to delay Mount Peake offtake

TNG and Indian mining conglomerate Vimson Group have delayed the completion of an offtake agreement due to the coronavirus pandemic.

The agreement involves a life of mine offtake of high purity iron ore products produced at TNG’s Mount Peake vanadium-titanium-iron project in the Northern Territory.

TNG intends to produce around 500,000 tonnes a year of iron oxide fines from its proposed TIVAN processing facility in Darwin.

TIVAN is a hydro-extraction process that was designed in partnership with Germany’s SMS Group.

TNG stated that measures taken by the offtake partners in response to the pandemic had impacted the progression of the agreement.

Both parties are now looking to complete the agreement by an additional 45 days.

“(TNG) remains focussed on finalising all offtake agreements for the high-purity products planned to be produced at Mount Peake,” TNG managing director Paul Burton said.

“TNG together with Vimson are committed to reach the final offtake agreement for iron oxide products for a life-of-mine basis as soon as possible, which will cement the strong relationship we have developed with Vimson since their original investment in the company in 2018.”

Vimson is a major shareholder in TNG, owning nearly 10 per cent stake in the company. It has been a supplier to Japan’s Nippon Steel and South Korea’s POSCO.

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