Australian resource and mineral processing company TNG has signed a binding life-of-mine off-take agreement with the India-based mining company VIMSON Group for high-purity iron products from Mount Peake vanadium-titanium-iron project.
The agreement has been signed between Vimson, through its Singapore-based wholly-owned subsidiary, V. M. Salgaocar & Bro., and TNG.
Under the terms of the agreement, TNG will sell whole of the iron ore to be produced by Mount Peake, on an FOB basis for global marketing and distribution, for a fixed commission.
TNG is anticipated to produce approximately 500,000 tonnes per annum of high grade iron ore fines from its proposed Darwin-based TIVAN processing facility.
TNG said that the agreement is aimed at financing and development of its 100% owned Mount Peake project in the Northern Territory.
The company has already signed the agreements for up to 60% of its vanadium pentoxide product and up to 100% of its titanium dioxide pigment product, supporting its commercial strategy for the Mount Peake project.
Mount Peake is one of the most advanced rare earths mine projects in the world
Located 235km north of Alice Springs, Mount Peake will be a long-life project producing a suite of strategic products including vanadium pentoxide, titanium dioxide pigment and iron ore fines.
The project, which is one of the most advanced rare earths mine projects in the world, has obtained major project facilitation status from the Northern Territory Government.
V. M. Salgaocar & Bro director Vivek S Salgaocar said: “We are excited by the prospect of bringing TNG’s differentiated iron products to market, and will leverage our deep capabilities to ensure the best financial outcome for all involved. This is a further step in Vimson’s path towards growing its global presence in the mineral resources space.”
