Industrial Minerals (ASX:IND) is seeking to finalise firm sales and/or long-term offtake deals over its flagship Stockyard High Purity Silica Sands (HPSS) Project in Western Australia.
The company, which has a $33.45 million market capitalisation, says positive discussions with potential offtake partners, which are being spearheaded by company Chair Ashley Pattison, Managing Director Jeff Sweet, and Marketing Manager Wei Li, are currently ongoing following a recent visit to China.
Industrial Minerals reports discussions thus far have delivered a mutual agreement on the benefits of processing final HPSS products in China to meet end customers’ specifications.
Processing Stockyard Direct Shipping Ore (DSO) HPSS in China has been deemed by Industrial Minerals to be the preferred option as it offers ‘significant’ advantages over processing in Australia, including lower capex and opex.
It is the company’s belief this move will also position it to be closer to its target market, therefore reducing transportation costs, as well as enhancing supply chain efficiency.
The company notes that during its trip to China, it visited and sat down with potential port facilities, industrial parks, and a silica sand processing plant manufacturer alongside potential offtake partners.
With discussions still ongoing, Industrial Minerals announces it will move forward with plans to conduct a site visit to Stockyard with potential offtake partners in August 2023, as well as conduct a further assessment of processing options in China in conjunction with continuous exploration at its other HPSS and quartz projects across Western Australia.
Commenting on the discussions, Sweet says: “I am pleased with the substantial progress that was made during a visit to China last month, where IND was able to tour silica sand processing plant factories, port facilities, and industrial parks with one of our potential strategic offtake partners.
During advanced discussions with potential strategic offtake partners, IND’s direct shipping ore strategy for the Stockyard Project was supported and processing options evaluated to produce HPSS product to final end-user specifications at a facility in China.
“I am pleased with the substantial progress that was made during a visit to China last month”
This is a key step for IND moving towards the production of silica sand from Western Australia to meet strong global demand from the photovoltaic (PV) solar and high-end technology markets. We are excited at the value this will bring to our shareholders.”
Industrial Minerals is an ASX-listed developer of high-purity silica and quartz, with advanced projects in Western Australia positioned to supply the rapidly expanding solar PV industry.
The company currently holds a 100% interest in 21 HPSS projects and 7 complementary projects across the state and is focused on exploring and developing these.
Write to Adam Drought at Mining.com.au
Images: Industrial Minerals Ltd