Australian listed minerals company, Tivan, has released its preliminary feasibility study (PFS) for its 100% owned Speewah Fluorspar project, 100km south of Wyndham in the East Kimberley region of Western Australia. 

The deposit has JORC proven mineral resources and an anticipated mine life of at least ten years. There is additionally a five-stage approach to resource expansion, supported by drilling plans to extend the mine life. Capital costs of the project are based on a conventional flowsheet based on physical separation and are A$236M (US$154M). Production is pegged at 140ktpy of acidspar with the first commercial output slated for Q1 2027. Effective C1 costs per tonne of fluorspar shipped (LOM) are US$288/t including the Critical Minerals Production Tax Incentive. Exports will be made from Port Wyndam, one of Australia’s most northern ports. 

Tivan has already announced a strategic partnership with the Japanese company Sumitomo Corp to develop and finance the project as a joint venture. On the formation of the joint venture, Sumitomo will be appointed as the sole distributor and agent for the project, giving a clear pathway for the project towards a Final Investment Decision. Japan is recognised as a “priority partner” country in critical minerals by the Australian Government.  

The company is also evaluating metallurgical fluorspar (metspar) as a by-product opportunity, as using lower grade ore and mineralised tailings could present long term opportunities to extend the mine life. Another development phase is to integrate hydropower from the Ord River Hydro Power Plant, and a long-term plan to develop the vanadium-titanomagnetite resource. 

Since 2021 acidspar prices have been climbing, reflecting demand from lithium-ion batteries in the electricity vehicle sector, where fluorine is used as the electrolyte as well as in the processing of natural flake graphite for use as an active anode material.  Demand has been climbing in both China and India, where hydrofluoric acid (HF) production capacity is booming. China already accounts for over 60% of global HF production since 2019, according to Project Blue data, whereas India currently sits at around 5%, although recently elevating its output into the top-5 countries. To bolster upstream supply of fluorspar for growing HF capacity, India and China have lowered tariffs on imports. India reduced the Basic Custom Duty on acidspar-grade fluorspar from 5% to 2.5% as part of its 2023/24 Union Budget. In December 2023, the Chinese Ministry of Finance reduced import tariffs on low arsenic fluorspar from 3% to zero.  

While most of Chinese acidspar production sits at below US$200/t according to Project Blue cost analysis of the fluorine industry, both China and India are expected to continue to increase acidspar imports going forward to meet demand and will encourage incentive pricing for new projects to enter the market, well above the cost base presented by Tivan. In the case of China, exports are also expected to reduce to protect its reserve base, further putting pressure on new seaborne supply. This will make room for new acidspar grade supply to the region, especially to meet its growing use in electric vehicle batteries and semi-conductor manufacturing.