Iluka joins Vale in titanium project

Iluka Resources has teamed up with iron ore producer Vale to evaluate and potentially develop a major titanium bearing deposit in Brazil.

The Perth-based mineral sands company signed a joint development agreement and an intellectual property agreement with Vale for the opportunity to undertake geological and metallurgical research programs at the Tapira complex, with the aim of developing a long-life, large-scale titanium operation.

“Iluka’s involvement provides the company with the opportunity to participate in the potential commercialisation of one of the largest known un-developed titanium mineral deposits,” Iluka managing director David Robb said.

The first phase of the study will include geological and technical evaluations, a market assessment and the determination of the preferred pilot plant design.

Depending on the results of the first phase, the companies will construct and operate a pilot plant, conduct feasibility studies for a commercial plant, and ultimately the construction of a commercial scale plant.

Iluka has secured funding for the first phase, pilot plant and feasibility studies through options to participate up to 49 per cent equity in a joint venture with Vale.

The company also has preferential options on other titanium dioxide deposits within the Brazilian ore producer’s portfolio.

Iluka’s share price was down by 0.82 per cent to $8.50 at 10:45am WST.