Strandline Resources (ASX: STA) has signed a binding Framework Agreement with the Government of the Republic of Tanzania which will see the parties establish a JV to operate a series of ‘world‐class’ mineral sands projects along that country’s coastline.
The agreement will see the establishment of a new business named Nyati Mineral Sands Ltd (Nyati), which will be 84% owned and managed by Strandline, with the remaining 16% government-owned.
The terms cover the operation of the existing Fungoni mineral sands project near the port of Dar es Salaam, along with the establishment of new assets including the large‐scale Tajiri project.
“This agreement puts us on the path to establishing a world‐class mineral sands business in Tanzania”
Speaking on the agreement, Strandline Resources Managing Director Luke Graham said “This agreement puts us on the path to establishing a world‐class mineral sands business in Tanzania, adding to our tier‐one Coburn mineral sands project now under construction in Western Australia.”
Strandline’s mineral sands projects along the Tanzanian coastlineThe combined Fungoni and Tajiri projects are expected to account for over USD $1 billion of EBITDA over a 30-year period based on published production targets. Strandline notes that the projects include ‘significant’ exploration upside along the ‘highly prospective’ Tanzanian coastline.
Nyati will produce a range of critical minerals including zircon, titanium, and monazite-containing rare earths, plus garnet.
Strandline believes that falling supplies and increasing demand for mineral sands will see Nyati ‘extremely well placed’ to capitalise on market dynamics.
Images: Strandline Resources Limited
