14 August 2018
Sales contracts secured for Fingerboards Mineral Sands Project
Kalbar Resources Limited has announced that it has secured several offtake agreements for the future sale of product from its Fingerboards Mineral Sands Project in Gippsland, Victoria.
Legally binding agreements were signed with the largest mineral sands toll processor outside of China, and a global leader in the production of high-technology chemicals and fused zirconia.
The agreements represent close to half of the mine’s forecast production of zircon and rutile, and more than 40% of the project’s revenue.
The Fingerboards Mineral Sands Project is a significant resource development project for the East Gippsland region, with the potential to provide about 200 jobs and a major boost for the regional economy.
The contracts are for 5 years, with an option to extend a further 5 years. Prices are linked to benchmark prices with an allowance for recovery factors and processing costs.
This largely completes the amount of zircon that Kalbar will put under contract for the time being.
In addition, Kalbar has signed an agreement with one of the global leaders in the production of rare earths. The Fingerboards mine will produce a globally significant amount of these minerals that are highly sought after due to their use in renewable energy applications.
Kalbar estimates that the rare earths produced by the Fingerboards mine could help produce 2.4 million electric vehicles per year or contribute to enough wind farm capacity to supply 14 million homes per year.
Kalbar’s Executive Chairman, Robert Bishop, said: “Kalbar has established strong relationships with the major consumers of our products and securing offtake for more than 40% of the project’s revenue represents a significant step in the de-risking of the project.”
“The Fingerboards is one of the leading projects in the world and our offtake partners are also industry leaders”, Mr Bishop said.
“Together we will go a long way to supplying minerals essential for high technology and renewable energy applications. Demand for our minerals is very strong and we expect to update on further offtake agreements in the near term”, he said.
Subject to approvals, the project is planned to start construction in 2019 with production commencing in 2020.
For announcements about the Fingerboards Project, please go to http://fingerboardsproject.com.au/news/
For general information about the Fingerboards Project and mineral sands generally, please explore our series of factsheets and bulletins