Market Dynamics
Iluka Resources signed Joint Development Agreement with VALE S.A.
Time: 2014-06-10 Source from: www.iluka.com
Iluka Resources Limited (Iluka) today advised that it signed a Joint Development Agreement (JDA) and Intellectual Property Agreement (IPA) with Vale S.A. for the staged evaluation and potential development of the major titanium mineral bearing deposit located at Tapira in Minas Gerais State, Brazil (the Tapira complex). Refer Figures 1 to 3 for location and deposit information.
The Tapira intrusive complex is host to large volumes of titanium-bearing minerals: anatase (titanium dioxide or TiO2), ilmenite (FeTiO3) and perovskite (CaTiO3), which occur in association with Vale’s existing phosphate mining operations. The JDA and IPA agreements will provide Iluka with the opportunity to undertake geological and metallurgical research programmes with a view to the development of a long life, large scale titanium feedstock operation.
The first phase involves a scoping study, including a series of geological and technical evaluations, a market assessment, and the determination of the preferred pilot plant design. This first phase is expected to take approximately fifteen months to complete.
Subsequent phases are dependent on the results of Phase 1 and include: the evaluation, construction and operation of a pilot plant; pre-feasibility and definitive feasibility studies for a commercial plant; and ultimately the construction and operation of a commercial scale plant.
In consideration for funding the first phase, pilot plant and feasibility studies, Iluka has secured options to participate, up to a maximum of 49 per cent equity, in a joint venture with Vale, as well as preferential options on other potential large scale titanium dioxide deposits within Vale’s portfolio.
David Robb, Iluka’s Managing Director stated: "Iluka’s involvement provides the company with the
According to Roger Downey, Vale’s Fertilizers and Coal Executive Director: "The agreement with opportunity to participate in the potential commercialisation of one of the largest known undeveloped titanium mineral deposits. The approach is an example of Iluka’s additional emphasis on alliancing and joint venture activities to identify and potentially develop new mineral resources needed over the long term by the mineral sands industry. The company is pleased to have Vale as its partner."
Iluka brings a partner with the expertise to add value and seek alternatives for faster development of the Tapira Titanium Project."