Alkane signs agreement with Austria’s Treibacher Industrie AG for DZP Production of Ferro-Niobium

July 17, 2013

  • Alkane Resources Ltd, through its wholly owned subsidiary Australian Zirconia Limited (AZL), has signed a Joint Venture Framework Agreement with Treibacher Industrie AG (TIAG). This replaces the MoU announced on 26 October 2011.
  • The intended Joint Venture activities are the production and marketing of ferro-niobium (FeNb) using niobium concentrate from the DZP.
  • The parties will form a company, initially wholly owned by AZL, to use TIAG’s proprietary technology to process DZP niobium concentrate at a facility in Australia (or other agreed location) to produce FeNb.
  • TIAG will have the option to purchase 50% of the new company within three years of commissioning of the plant and will have exclusive rights to market the FeNb.
  • The Joint Venture expects to produce over 3,000 tonnes of FeNb utilising all of the niobium concentrate produced from the 1 million tonnes per annum development of the DZP.
  • At current prices, annual production of FeNb will generate revenue of approximately US$90 million with AZL’s share estimated to be about A$80 million (depending upon A$/US$ exchange rate), which is 16% of total anticipated annual project revenue as determined by the recently completed definitive feasibility study (ASX announcement 11 April 2013).
  • AZL will be the only producer of niobium in Australia once production commences in 2016.
  • The EIS for DZP was lodged with the NSW Department of Planning and Infrastructure on 28 June 2013 marking the start of the approval process for this State Significant Project.