20th May 2016 07:01
LONDON (Alliance News) - Ironveld PLC Friday said it has finalised offtake agreements with Oreport (Pty) Ltd which will lead to the London-listed miner selling all of the titanium slag produced from its project in South Africa.
Ironveld owns a high-purity iron, vanadium and titanium project within the Northern Limb of the Bushveld Complex where it plans to mine ore to feed a 15.0 megawatt DC smelter which in turn will produce speciality iron products such as high purity iron powder as well as vanadium and titanium slag products.
The miner reached a milestone on Friday after finalising a deal with South-African firm Oreport, which has agreed to take all of the titanium slag that the project is expected to produce, equal to around 8,269.0 tonnes per year.
As well as taking all of the titanium production, Oreport has first refusal for the high-purity iron powder and the vanadium slag - meaning Oreport could potentially be taking a large chunk of the production to come from Ironveld's project.
Production is expected to start next year, when the agreement with Oreport will kick-in and last for five years.
However, Ironveld Chief Executive Peter Cox said the firm was close to finalising other offtake agreements for the HPI powder and vanadium slag.
Ironveld also said it is expecting to secure the final mining right for the project shortly and said the land lease agreement where the smelter will stand is currently being processed. Once secured, Ironveld will be free to close the financing package needed to begin building the project.
By Joshua Warner; [email protected]; @JoshAlliance
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