core sector communique

Matilda Market Update

 

 

Matilda Zircon Limited (ASX: MZI) advise the Company has commenced discussions with significant Chinese mineral sands separating group Tricoastal Minerals (Holdings) Co. Ltd.

 

Discussions include investing into Matilda with an equity position and board representation, providing a loan facility for development together with an Offtake Agreement for all zircon and rutile concentrate production.

 

The Tricoastal Minerals Group consists of 7 mineral separating and milling plants as well as an office based in Hong Kong. The Group is managing one of the largest mineral separation capacities in China and processes from mineral concentrate to rutile, ilmenite, cyanite, zircon sand and flour.  In terms of mineral sands, the capacity is over 250,000mt annually (excluding ilmenite).  Capacity for ilmenite is over 200,000mt per year.  In 2010-2011, the Group looks forward to a zirconium silicate plant coming on-line. 

 

Director Michael Kiernan commented the Tricoastal Group are well known to me and have demonstrated over time to be a strong and reliable purchaser of mineral sands from Australia.

 

“We are delighted at the prospect of Tricoastal becoming our partners in Matilda as this will underpin the Tiwi Island zircon operation,” Mr Kiernan said.

 

“Tricoastal are looking for stable and reliable suppliers with high quality mineral sand resources and with the excellent quality of the Tiwi zircon/rutile concentrate which was previously in strong demand from the Chinese markets our partnership will be important for both Groups,” he added.