Thunderbird Project-The next zirconite mountain around the world

At present, there are 10 zirconium and titanium mines in Australia. According to the information and statistics released by various companies, six (Jacinth-Ambrosia, Cataby, Wonnerup, Boonanarring/Atlas, Yalyalup and Keysbrook) will be exhausted and stop production in the next five years, and it is estimated that the output of zircon sand will reach about 360000 tons. At present, there are three zirconium and titanium mines under construction in Australia (Balranald and Eneabba in O Luka and Thunderbird Thunderbird project in Sheffield Yanshan Iron and Steel Co., Ltd.), all of which are expected to increase production capacity by about 160000 tons. Thus it can be seen that the development of new large-scale zirconium-titanium projects / mines still has a good market space.

We have already introduced the new Coburn project launched by Stroeland Resources (ASX Code: STA). The project has now been completed and commissioning and capacity enhancement have been carried out (seven ships of heavy mineral concentrate and one ship of ilmenite concentrate have been issued). The Thunderbird Zirconium-Titanium Ore Project (Thunderbird Project), recently developed by Sheffield Resources and Yanshan Iron and Steel Co., Ltd. has completed its construction and started commissioning, which is expected to be the next new zirconium-titanium mine in the world.

Sheffield Resources / Kimberley Ore (Sheffield Resources/Kimberley Mineral Sands)

Sheffield Resources is a mining company listed on the Australian Stock Exchange (ASX: SFX) and specializes in the exploration and development of zirconium and titanium heavy minerals in Australia and Brazil. Headquartered in Perth, Australia, its core assets are the Thunderbird zirconium-titanium project in Western Australia (Thunderbird Project, 50 per cent equity) and the South Atlantic heavy Ore Project (South Atlantic Project) at the southern tip of Brazil, with a current market capitalization of about A $200m.

Sheffield's flagship Thunderbird Project (Thunderbird Project) is one of the largest untapped zirconium-titanium deposits in the world. At present, the Thunderbird project is owned by 100% Kimberley ore (Kimberley Mineral Sands,KMS), which is a 50:50 ratio of Sheffield to Hebei Tangshan Yanshan Iron and Steel Co. (YGH Australia Investment). The main purpose of the joint venture company established in 2021 is to develop the Thunderbird project. In addition, Yanshan Iron and Steel also owns a 9.9% stake in Sheffield and enjoys 100% underwriting rights for the titanium ore products of the Thunderbird project. To a certain extent, Yanshan Iron and Steel will lead the process of the project.

The Thunderbird project, located on the Dampier Peninsula in northern Western Australia, is a fine-grained offshore marine zirconium-titanium deposit, similar to the WIM type placer in western Victoria, but more weathered. According to the updated data in March 2022, the Thunderbird zirconium-titanium placer project has JORC standard reserves of 748 million tons, with an average heavy mineral grade of 11.0%, and a total of 83 million tons of heavy minerals, of which valuable heavy minerals account for about 40.9% (zirconium 7.7%, ferrotitanium 28%, etc.).

According to the feasibility study (feasibility study) report released in 2019, the Thunderbird project will be carried out in two stages. the first phase of the project is expected to invest A $478 million, with a planned annual treatment of 10.4 million tons of raw ore (1085 dry tons per hour) and a designed output of 913000 tons of various types of concentrates; the capacity of the second phase of the project will be doubled, and the design life of the mine will be about.

After Hebei Yanshan Iron and Steel Co., Ltd. invested in the Thunderbird project, some optimizations were made to the mineral processing process in the original feasibility study report: the low temperature roasting (Low Temperature Roast,LTR) process and the cleaning plant (Mineral Separation) in the ilmenite treatment process (Ilmenite Processing Circuit,IPC) originally planned to be carried out in the field. Plant,MSP) process transfer and simplification, the final treatment process: after the on-site completion of the spiral chute primary, multiple magnetic separation and gravity separation to produce zircon concentrate (Zircon Concentrate), magnetic concentrate (Magnetic Concentrate) and a paramagnetic concentrate (Paramag concentrate) a total of three products, then these products will be shipped to China for further cleaning to reduce the amount of mineral processing at the mine site.

Test run and Challenge of Thunderbird Project

On August 14, 2023, Sheffield Resources announced that the Thunderbird project had completed the construction task and started formal commissioning (figure 4 and figure 5), and the selection plant of Yanshan Iron and Steel Co., Ltd. has also been completed and is ready for commissioning. If the test run goes well, the first batch of concentrate products are expected to be delivered to customers in the first quarter of 2024.

Thunderbird project has the advantages of large reserves and high grade (although the proportion of valuable heavy minerals is only 40.9%, the grade of valuable heavy minerals is still high after removing impurities). The challenge faced by the project development is that the mining area is relatively remote, and the on-site mineral processing process is more complex (two-stage wet magnetic separation and three-stage spiral chute re-separation), infrastructure construction costs and future operating costs will be higher. The mineral weathering degree of Thunderbird deposit is very high, and its magnetic mineral is a mixture of ilmenite and ilmenite, whose physical properties are similar and difficult to separate. It is necessary to reduce ilmenite to titanomagnetite by low temperature roasting. Ilmenite, ilmenite and other minerals or impurities are separated by magnetic separation.

Cross-border and Transformation of Yanshan Iron and Steel Co., Ltd.

Hebei Yanshan Iron and Steel Co., Ltd. was established in 2002 (former Qianan Liangang Yanshan Iron and Steel Co., Ltd., former Tangshan Great Wall Iron and Steel Group Yanshan Iron and Steel Co., Ltd.). It is a private iron and steel enterprise, mainly engaged in iron and steel, metallized pellet smelting, steel rolling and iron powder sales. As an iron and steel enterprise, Yanshan Iron and Steel Company decided to set foot in the chemical industry is a bold attempt. Yanshan Iron and Steel Co., Ltd. has set its sights on the historical opportunity of the transformation of titanium dioxide industry from sulfuric acid to chlorination, and has entered this new field with its strong strength.

At present, the first phase of the chlorination titanium dioxide project with an annual output of 1 million tons invested by a wholly-owned subsidiary of Yanshan Iron and Steel Co., Ltd. in Nanpu Economic Development Zone of Caofeidian, Tangshan has entered the stage of equipment installation, and the first phase of the project has built two production lines with an annual capacity of 80, 000 tons. at the same time, there are two single-line production lines with an annual output of 100000 tons of titanium slag and one annual production line of 160000 tons of artificial rutile. The second phase of the project will build four new production lines with an annual production capacity of 80,000 tons of chlorinated titanium dioxide. By the end of the 14th five-year Plan, when all the projects are completed, Yanshan Iron and Steel Co., Ltd. will have more than half of the market share of chlorinated titanium dioxide in China, and will become one of the most advanced and largest chlorinated titanium dioxide production enterprises in China. it will form a strong competition for the existing titanium dioxide enterprises.

In order to ensure the supply of raw materials for its titanium dioxide chlorination project, by investing in the Thunderbird zirconium-titanium project in Sheffield, Yanshan Iron and Steel Co., Ltd. has successfully locked in the upstream resources (at present, Thunderbird ilmenite products have been confirmed to be underwritten by Yanshan Iron and Steel Co., Ltd.). It is believed that with its accumulated experience and technology in smelting, it is expected to overcome the smelting challenges of the Thunderbird project ilmenite and control the processing cost. The ilmenite product has been successfully transformed into a reliable raw material for its downstream chlorination titanium dioxide project.

"it's a long journey, and I won't stop pursuing it." Yanshan Iron and Steel Co., Ltd. has crossed the border from the metallurgical industry to the chemical industry, reflecting not only its bravery. At the same time, it is also out of confidence in its own smelting technology and long-term positive judgment on the future titanium and zirconium industry market (figures 7 and 8). Whether the Thunderbird project can be successfully trial-produced and run steadily, and whether Yanshan Iron and Steel can expand in the chemical industry, we will wait and see.