PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has secured a binding 15-year power purchase agreement (PPA) with Pacific Energy for electricity supply to its Thunderbird project, in Western Australia.

Under the terms of the agreement, Pacific Energy will build, own and operate the power generation, liquefied natural gas (LNG) storage and regasification facilities for Thunderbird.

The power station is designed to accommodate a maximum demand capacity of 16 MW with LNG storage unit capacity of up to 10 days demand from the Thunderbird project. LNG will be trucked to the on-site storage and re-vaporisation facility supplied by Pacific Energy.

Sheffield said on Friday that the flexible, long-term PPA provides a stable power generation source for the Thunderbird mineral sands project.

The agreement is subject to a number of customary conditions precedent, including Sheffield subsidiary Kimberley Mineral Sands (KMS) making a final investment decision toward the development of Thunderbird and providing a notice to proceed in favour of Pacific Energy.

Under the agreement, KMS and Pacific Energy will also consider longer term enhancements including the investment in renewable energy solutions and expansion consistent with the expected production growth at Thunderbird.

“We are extremely pleased with the support from Pacific Energy in delivering a stable and efficient energy solution for Thunderbird. We look forward to KMS expanding their relationship with Pacific Energy, and we welcome this important milestone step in establishing Thunderbird as the next major mineral sands producer in the near future,” said Sheffield executive chairperson Bruce Griffin.

A March definitive feasibility study estimated that the project would require a capital investment of A$361-million for the Stage 1 operation, which would have a process rate of 1 085 t/h.

The two-stage Thunderbird development pathway sees the initial Stage 1 mining and processing feed rate forecast at 1 085 t/h at the wet concentrate plant (WCP), with Stage 2 doubling the WCP feed rate to 2 170 t/h targeted during Year 5 of operations.

Stage 1 and 2 of operations is estimated to produce 1.4-million tonnes a year of zircon and ilmenite concentrates over an estimated 36-year life-of-mine.