TNG Limited has signed its first binding offtake agreement for its Mount Peake Vanadium-Titanium-Iron Project in Australia’s Northern Territory, with major Korean-based ferro-vanadium group Woojin Industry, Co Ltd (WJN).
The deal with Woojin also includes a technology transfer agreement for the TIVAN refinery.
These landmark agreements were signed last week by TNG’s managing director Paul Burton and Woojin’s CEO Mr Ki at a formal ceremony held at Woojin’s headquarters in Seoul, South Korea.
The life-of-mine offtake agreement encompasses binding commitments for WJN to take or pay a minimum of 60% of the vanadium pentoxide and other vanadium products from Mount Peake with a minimum guaranteed price which, based on the cost of production estimates determined under the DFS, is 20% above TNG’s forecast cost of production.
This offtake agreement will allow more accurate forecasts of project revenue and profitability and creates a strong foundation for the project’s financing and development.
TNG also entered into a binding agreement for the transfer of ferro-vanadium (FeV) production technology from WJN. The FeV conversion plant will be installed at TNG’s TIVAN refinery site and will allow TNG to further diversify the product portfolio assumed in the DFS, move up the vanadium value chain with a product that is directly saleable to major steel mills on a global basis and take advantage from any price advantage of one product over the other.
WJN’s proprietary technology has the world’s highest vanadium recovery rate and TNG expects this to significantly benefit the company with additional profitability over the project’s life.
Paul Burton said the signing of TNG’s first-ever offtake agreement represented a huge milestone for the company and for the Mount Peake Project. “These agreements crystallize a very close and strong relationship developed over the past year from a non-binding Memorandum of Understanding to a commercial agreement for the life of the project.
“WJN is one of the world’s leaders in ferro-vanadium production, with a strong research and development capability and a considerable depth of marketing expertise in the global vanadium industry and as a result a tier one partner for TNG. This will spearhead TNG to become a potentially world leader in the vanadium sector.”
www.tngltd.com.au or www.wjic.co.kr