Sheffield Resources Limited has secured a 15-year agreement with Woodside Energy Limited and Energy Developments Pty Ltd (EDL) for the supply and delivery of 1,950 terajoules per annum of liquified natural gas (LNG) to the Thunderbird Mineral Sands Project, in northern Western Australia.
As per the agreement, LNG will be supplied from Woodside’s Pluto LNG Truck Loading Facility near Karratha and transported to Thunderbird’s LNG storage facility by a newly formed joint venture between Woodside and EDL.
The Woodside-EDL joint venture will own and operate a purpose-built road tanker fleet to deliver the LNG to Thunderbird.
Sheffield has stated that using LNG at Thunderbird provides them with a low cost, low emission, fuel source that is ideally suited to the ilmenite low-temperature roast process proposed for the Thunderbird processing plant.
The agreement is subject to a number of customary conditions, however, including the company making a final investment decision on Thunderbird’s development.
Thunderbird is one of the largest and highest-grade mineral sands discoveries in the last 30 years and is considered to be the first major mineral sand deposit discovered in the Canning Basin.
Sheffield’s Bankable Feasibility Study highlights that Thunderbird is a technically low risk, modest capex project that is positioned to generate strong cash margins from ‘significant’ production levels over a mine life of 42 years.
In commenting on today’s announcement, Sheffield Managing Director, Bruce McFadzean, said Sheffield is extremely pleased with the level of support shown by Woodside and EDL in delivering a low cost, long-term, energy solution for Thunderbird.
“The project is now fully permitted and construction ready, with offtake and financing agreements in place. We look forward to continuing our relationship with Woodside and EDL as we move toward development during 2019,” Mr McFadzean stated.
More information on the Thunderbird Mineral Sands Project can be found here.