PERTH (miningweekly.com) – Strategic metals company TNG has signed a binding term sheet with Switzerland-based speciality chemicals distributor DKSH, to purchase all the titanium dioxide pigment produced at the Mt Peake vanadium/titanium/iron project, in the Northern Territory.
TNG MD Paul Burton said on Tuesday that under the agreement, DKSH will provide a full distribution service for the Mt Peake titanium dioxide products, including technical support, global logistics, marketing and sales, using its global network.
“Our core target market will initially be the production of a high-durability pigment for the outdoor coating industry, before branching out into other high-value niche markets,” Burton said.
He noted that the agreement with DKSH represented another major step forward for the project, and paved the way for financing and development of the Mt Peake project to proceed.
In addition to the DKSH offtake agreement, TNG also has a binding life-of-mine (LoM) offtake agreement with WOOJIN metals for a minimum of 60% of the vanadium output from Mt Peake, and a binding term sheet with Gunvor from Singapore, for LoM offtake for iron products.
Mt Peake is forecast to produce 243 000 t of high purity vanadium pentoxide, 3.5-million tonnes of titanium pigment and 10.6-million tonnes of iron oxide over a 17-year mine life.