Strandline secures $150m NAIF loan for Coburn mineral sands project in Gascoyne
Strandline Resources will proceed with full development of its Coburn mineral sands project in the Gascoyne after securing financial closure of a $150 million loan from the Northern Australia Infrastructure Facility (reports The West Australian).
7th October 2021
The loan is expected to help create 300 jobs during construction and 150 ongoing jobs after completion.
Strandline said Coburn, which is targeting first production in the December quarter of next year, would capitalise on a strengthening price outlook for mineral sands and the growing demand for critical minerals.
Mineral sands are used in ceramic tiles, pharmaceuticals, electronics, paint, plastics, titanium metal and the use of welding rods.
Earthworks at the site south of Denham are already under way and the company will now proceed to drawdown of the NAIF funding and $US60m of bond facilities.
Managing director Luke Graham said reaching financial close was confirmation of the technical and financial strength of the project and strong construction progress achieved to date.
Coburn, which is expected to have a mine life of 22.5 years, is expected to deliver total revenue of $4.37 billion. Strandline said mining could extend to 2060 by converting mineral resources which exist immediately north and along strike of existing ore reserves.
Northern Australia Minister David Littleproud said Strandline was expected to build one of the most capital efficient and biggest mineral sands projects in the world.
“The $150m in support from NAIF will help fund key mining infrastructure and unlock hundreds of millions of dollars in economic benefit in the region,” Mr Littleproud said.
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