Little Aussie miner pushes back on Chinese control of critical minerals

The announcement by ASX-listed Tivan of Japanese support for its fluorite projects is a small example of the effort to build supply chains that are independent of China.

Jennifer Hewett

It’s far too slow and incremental but the international effort to challenge China’s dominance in the supply and processing of key critical minerals is taking belated shape.

Monday’s ASX announcement of Japanese government interest in supporting Tivan, a small listed Australian would-be miner and processor of fluorite, is another minor signpost on that long road.

The Lynas-owned Mount Weld mine in Western Australia is Australia’s flagship rare earths facility. Trevor Collens

Fluorite is not one of the rare earth elements that China has recently been restricting as part of its trade battle with the US, but it is still likely to play a role in the new global push against Chinese control of markets for key minerals.

It is the raw material for the hydrofluoric acid used in chemical processes such as semiconductors and electric vehicle battery manufacturing, refrigerants and smelting in industries like aluminium.

China has shifted from being the world’s largest producer of fluorite to being the largest global importer, most of it from Mongolia, as its own supplies dwindle relative to its own demand.

Tivan’s two proposed projects in Western Australia and the Northern Territory are still in the feasibility and exploration phase of development. But the Australian government’s decision to put fluorite on its critical minerals list at the end of 2023 encouraged the company to switch from its initial unsuccessful goal of mining vanadium to consider fluorite.

That shift attracted support from Japan’s big trading house, Sumitomo, along with a $7.5 million critical minerals grant from the Commonwealth government on the basis that Tivan had an international partner.

Now the Japanese Organisation for Metals and Energy Security is partnering with Sumitomo to invest a joint $11 million. Assuming the projects proceed to final investment decision next year, Sumitomo has the rights to 100 per cent of the production – planned to be 140,000 tonnes a year – in exchange for a further $50 million in funding from both partners. The Japanese would end up with 22.5 per cent of the company.

The estimated $250 million cost of development would include that $50 million from Japan as well as $50 million from an Australian family office. The additional $150 million would come from debt financing, with the Australian government expected to play a role in this.

Capital raise announced a few days ago

And also another example of a high profile non--exec director doing nothing for the share price. Since the appointment, share price went from 8c back down to 5.9c.

Although it is good Guy Debelle did buy $20K worth of Tivan stock so will give credit for that.

Still watching as Tivan do have a few promising projects.

Presentation by Exec Chair, Grant Wilson on plans to accelerate plans to mine Fluorine which is a geographically seperate mineral at Speewah. (vanadium site)

https://www.youtube.com/watch?v=Uz33vVBPH40

Old article from the ABC abuot Tivan returning to Darwin Harbour to build their processing facility

They previously withdrew due to backlash from pearl farming business Papasley and a Barramundi farm when they were planning to discharge water into the waterways..

https://www.abc.net.au/news/2023-02-14/tivan-deal-to-process-at-middle-arm-precinct-near-darwin/101972472

Tivan is now planning to keep wastewater on site. Still doing some check on how they plan to do this and if any inadvertent discharge is still possible..

On another note, I do see that the news about the former RBA deputy governor and once successor to Lowe joining the board is still having a positive impact - now up another 15%! Going to eat my hat soon about the rally being overcooked.

Have to wonder what is so special about this TVN that RBA former deputy governor Guy Dubelle resigns from his CFO role at FFI (Fortescue Future Industries) for a non executive role here and not a bigger company.

Given this is not an executive position I think the 33% rally is a bit overbaked.

Reckon Andrew Forrest might be having a bit of a think right now with all these executives leaving FMG.

Meanwhile might be worth doing some research into TNG's projects.