Tivan Limited (ASX: TVN) and Sumitomo Corporation have finalized binding agreements to establish an incorporated joint venture (IJV) for the Speewah Fluorite Project in Western Australia. Sumitomo’s investment, channeled through Japan Fluorite Corporation (JFC), could reach A$60.3 million for up to a 22.5% equity stake in the IJV. This partnership aims to develop Australia’s first fluorite mining and processing operation, producing acid-grade fluorspar for global export. The initial $5.3 million equity investment from JFC will support a Feasibility Study, supplemented by funding from the International Partnerships in Critical Minerals (IPCM) program.
Tivan will manage the IJV for at least five years, overseeing development, construction, and operations. A term sheet guarantees JFC the right to acquire up to 100% of the project’s output, with 80% committed on a take-or-pay basis, pending a final binding offtake agreement. The Speewah Fluorite Project, located in the Kimberley region, boasts a JORC-compliant resource of 37.3 million tonnes at 9.1% CaF2, including a high-grade component. With fluorine now on Australia’s Critical Minerals List, this project seeks to reduce reliance on imports from China, Mexico, South Africa, and Mongolia.
A Pre-Feasibility Study in July 2024 demonstrated the project’s robustness, projecting a pre-tax NPV of $480.1 million and IRR of 37.9%. Tivan’s acquisition of the Sandover Fluorite Project further consolidates its position in the Australian fluorite market. The strategic alliance with Sumitomo Corporation, formalized through this IJV, represents a significant milestone. Sumitomo’s diversified global interests and Tivan’s on-the-ground expertise create a synergistic partnership.
FIRB approval is pending for the first tranche of Sumitomo’s investment, with ACCC review underway. The project also benefits from a $7.4 million IPCM grant. The joint venture underscores Australia’s commitment to developing its critical minerals sector, strengthening supply chains and bilateral trade with Japan.
