Neometals Ltd.: Successful Commerical-Scale Smelting Trials for Barrambie
HIGHLIGHTS
- Commercial-scale smelting of Barrambie mineral concentrate blended with commercial ilmenites produced premium quality chloride grade titanium slag;
- Results provide real world industry validation that saleable titanium and iron / vanadium co-products can be produced using a simple and conventional processing pathway;
- With technical due diligence completed, Neometals and potential offtake partner, Jiuxing, can commence binding offtake negotiations; and
- Completion of pre-feasibility study expected in December quarter to confirm ‘value-in-use’ for the product basket to support offtake dialogue.
Emerging battery materials producer, Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to announce highly encouraging results with production of +90% TiO2 chloride slag from the industrial scale smelting trial of a blend of Barrambie Mixed Gravity Concentrate (“MGC”) with other ilmenites. Neometals’ potential offtake partner, Jiuxing Titanium Materials (Liaonging) Co. Ltd (“Jiuxing”), ran the trial at their production facility in China. Jiuxing is one of the leading chloride-grade titanium slag producers in the world and is the largest in north-eastern China.
During H1 2022, a mixed gravity bulk sample was prepared from Barrambie mineralisation with approximately 40t delivered to Jiuxing in China. Jiuxing then blended the Barrambie MGC with other commercially available titanium sources to produce feedstock suitable for an industrial scale smelter trial. The +90% TiO2 titanium chloride grade slag produced is within specification of what is a well-established standard titanium industry feedstock. Importantly, the smelting trial was run at a commercial industrial facility and the successful result represents the final stage of technical due diligence required for Jiuxing and Neometals to begin negotiation on a binding formal offtake agreement. Cornerstone offtake of MGC is a key pillar in Neometals’ Barrambie strategy of deriving value from the titanium, vanadium and iron mineral resource on a capital light basis with refining activities being undertaken by purchasers overseas.
The Jiuxing MoU[i] contemplates a path to a formal offtake agreement where Neometals supplies a MGC or separate ilmenite and iron-vanadium concentrate from Barrambie to Jiuxing. Specifically, the MoU outlines an evaluation regime and contains the key commercial terms for a formal offtake agreement (i.e. pricing, volumes, price floor etc.), subject to product evaluation from smelting trials. The Jiuxing MoU contemplates the parties negotiating and entering into a binding formal offtake agreement for the supply of 800,000 dry tonnes per annum (“dtpa”) of MGC or 500,000 dtpa of ilmenite and 275,000 dtpa of iron-vanadium concentrate, on a take-or-pay basis for a period of 5 years from first production.
Chris Reed, Neometals Managing Director said: “The ability to produce chloride-grade titanium slag from simple gravity concentrate from Barrambie is the key technical milestone for the next stage of project development. The results establish the potential value-in-use of MGC for negotiations with potential customers who seek quality feedstocks from low-risk jurisdictions that are amenable to simple and conventional processing pathways. Barrambie is a unique tier 1 project that offers a range of development alternatives including the possibility of direct shipping of ore, beneficiation of ore into MGC or further processing of MGC to produce separate ilmenite and vanadium rich magnetite products.”
Mr Liu, Chairman of the Board of Jiuxing commented: “Jiuxing confirms that blending and smelting trials on Barrambie material have been successful and achieved premium quality standard titanium slag. Jiuxing confirms that this is the final technical confirmatory step required to enable the parties to begin negotiation on pricing and final offtake arrangements.”
Figure 1 - Left - Titanium chloride grade slag produced from the smelting trials; Right - Pig iron produced from the smelting trials. Source: Jiuxing.
Next Steps
The Neometals Barrambie contractor engagement process continued during the quarter with leading service providers and this information has been utilised in advancing an Association for the Advancement of Cost Engineering (“AACE”) Class 4 Barrambie pre-feasibility study (“PFS”). The engineering capital and operating cost estimate will consider all aspects of the Barrambie value chain from a simple Direct Shipping Ore (“DSO”) option, a beneficiation option to make MGC, and an option to Low Temperature Reduction Roast (“LTR”)[ii] the MGC and separate into ilmenite and iron-vanadium concentrate streams. However, given the ongoing offtake discussions with Jiuxing, the PFS estimate is based on the LTR option which provides readily available product market indices to evaluate the project against. The PFS is on track for completion in the December Quarter 2022.
The Barrambie PFS exercise will form a key component of the due diligence required by the successful ‘build-own-operate’ partner. This development model was used successfully by Neometals and its partners to advance the Mt Marion Lithium Project in 2015, which is now the world’s second largest producer of spodumene (hard-rock lithium) concentrates (Neometals sold its final equity position in the project in 2019 and its offtake right in 2021).
Figure 2 - Indicative Timeline - Barrambie
Background
A mine & beneficiate flowsheet option to produce MGC containing titanium, vanadium and iron for direct smelting is the favoured flowsheet option with potential offtake partner Jiuxing. Jiuxing is contemplating a direct smelt of the MGC blended with commercially available ilmenites.
A secondary flowsheet option with a low temperature reduction of the mixed gravity concentrate to enable a magnetic separation to produce two distinct products – ilmenite and iron-vanadium concentrate is also possible.
Figure 3 - Simplified overview of the Barrambie MGC flowsheet
Figure 4 - Simplified overview of the Barrambie LTR flowsheet
Continued strong demand for high quality chloride grade titanium feedstocks coupled with a shortage of supply is resulting in strong price growth as shown in the following figure.
Figure 5 - Price trend 2018 - 2022 ilmenite concentrate, 47-49% TiO2, CIF China, US$/tonne. Source: Fastmarkets.
Costeaning
Between June and August 2021, a costeaning and bulk sampling program was completed at Barrambie. The program was designed to extract mineralisation from three costeans on Mining Lease M57/173-I with material taken from near surface with TiO2 grades similar to the Mineral Resource[iii]. 470t of mineralisation was excavated, sampled and bagged for transportation. Diagrams of the location of costeans from where the bulk sample mineralisation was obtained are included in Appendix 1.
Figure 6 - Costeaning operations to extract, sample and bag mineralisation at Barrambie. Source: Neometals.
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Authorised on behalf of Neometals by Christopher Reed, Managing Director
ENDS
For further information, please contat:
Chris Reed
Managing Director
Neometals Ltd
T: +61 8 9322 1182
Jeremy McManus
General Manager - Commercial and IR
Neometals Ltd
T: +61 8 9322 1182
About Neometals Ltd
Neometals’ focus is the continuous development and commercialisation of our proprietary innovative technologies with strong global partners to generate value through sustainable production of battery materials.
Decarbonisation, sustainability and resilient supply chains are the key challenges for the energy storage and electric vehicle supply chain. Our technologies, particularly those in battery materials recycling and recovery, reduce reliance on traditional mining and processing, and support circular economic principles.
Neometals have three core battery materials businesses commercialising proprietary, low-cost, low-carbon process technologies:
- Lithium-ion Battery (“LIB”) Recycling (50% equity)– to produce nickel, cobalt and lithium from production scrap and end-of-life LIBs in an incorporated JV with leading global plant builder SMS group. The Primobius JV is operating a commercial disposal service at its 10tpd Shredding ‘Spoke’ in Germany and is the recycling technology partner to Mercedes Benz. Primobius’ first 50tpd operation will be in partnership with Stelco in Canada is expected to reach investment decision in Dec 2022;
- Vanadium Recovery (earning 50% equity) – to produce high-purity vanadium pentoxide via processing of steelmaking by-product (“Slag”). Finalising evaluation studies on a 300,000tpa operation in Pori, Finland and a potential JV with Critical Metals, underpinned by a 2Mt, 10-year Slag supply agreement (together with potential availability of a further 1.1Mt) with leading Scandinavian steelmaker SSAB. Investment decision expected end Dec 2022. MOU with H2Green Steel for up to 4Mt of Slag underpins a potential second operation in Boden, Sweden; and
- Lithium Chemicals (earning 35% equity)– to produce battery quality lithium hydroxide from brine and/or hard-rock feedstocks using RAM’s patented ELi® electrolysis process. Co-funding pilot plant and evaluation studies on a 20,000tpa operation in Estarreja, Portugal in a 50:50 JV between RAM (70% NMT, 30% Mineral Resources Ltd) and Portugal’s largest chemical producer Bondalti Chemicals S.A. Investment decision expected Dec 2023.
COMPETENT PERSONS STATEMENT
Exploration
The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by Mr Gregory Hudson, who is a member of the Australian Institute of Geoscientists. Mr Hudson is a full-time employee of Neometals Ltd and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hudson has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears.
Metallurgy and Sampling
The information in this report that relates to metallurgical test work results is based on information compiled and / or reviewed by Mr Gavin Beer who is a Member and Chartered Professional of The Australasian Institute of Mining and Metallurgy. Mr Beer is a full-time employee of Neometals Ltd and has sufficient experience relevant to the activity which he is undertaking to be recognised as competent to compile and report such information. Mr Beer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
COMPLIANCE STATEMENT
The information in this report that relates to Mineral Resource Estimates for the Barrambie Titanium Project are extracted from the ASX Announcement entitled “Updated Barrambie Mineral Resource Estimate” lodged 17 April 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included on the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified form the original market announcement.
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[i] For full details refer to ASX announcement entitled “Barrambie - MOU for Cornerstone Concentrate Offtake” (“Jiuxing MoU”) released on 16th April 2021.
[ii] For full details refer to ASX announcement entitled “Barrambie Flowsheet Breakthrough” released on 22nd December 2020.
[iii] For full details refer to ASX announcement entitled “Updated Barrambie Mineral Resource Estimate” released on 17th April 2018.
