Strandline Resources has made the final investment decision (FID) to proceed with the development of the 100%-owned $261.5m (A$338m) Coburn mineral sands project in Western Australia (WA).
Construction on the project is planned to start immediately with completion expected in Q4 2022.
The Coburn project is estimated to have ore reserves of 523 million tonnes and an operational life of 22.5 years.
It is expected to produce up to 34,000tpa of premium zircon, 54,000tpa of zircon concentrate, 110,000tpa of ilmenite, and 24,000tpa of rutile.
Strandline managing director Luke Graham said: “The project capitalises on its robust technical and commercial fundamentals, and Western Australia’s strong position to support growing demand for critical minerals such as zircon, titanium and rare earths.
“The project is set to benefit from increasing demand and falling supply of its critical minerals following years of under-investment in new projects.”
The Coburn mine is supported by binding offtake contracts covering 95% of its production with consumers in America, Europe and Asia, for the first five years.
The mine is expected to create 300 construction jobs and 150 jobs once commissioned.
Strandline said that it has already awarded a series of contracts covering around 80% of the project’s construction scope.
In a press statement, Strandline said: “Coburn is set to capitalise on increasing global demand for critical minerals, including zircon, titanium and monazite containing rare earths – products used in everyday life.”
Recently, Strandline Resources awarded a $104.7m (A$135m) contract to NRW Holdings Group to build the processing facilities for the Coburn project.