Regulatory Hurdles Loom as Tivan-Sumitomo JV Advances Speewah Fluorite

A Strategic Partnership for Critical Minerals

Tivan Limited (ASX: TVN) has taken a significant stride in advancing the Speewah Fluorite Project with the execution of binding joint venture agreements alongside Sumitomo Corporation, a Fortune Global 500 Japanese trading house. This partnership, formalised through Sumitomo’s newly incorporated subsidiary Japan Fluorite Corporation (JFC), sets the stage for the development, financing, and operation of what is poised to become Australia’s first fluorite mining and processing operation.

Sumitomo’s potential equity investment of up to A$60.3 million for a 22.5% stake in the incorporated joint venture (IJV) underscores the project’s strategic importance. The initial tranche of A$5.3 million will fund a comprehensive Feasibility Study, with subsequent tranches contingent on project milestones and regulatory approvals.

Project Overview and Market Significance

Located in the Kimberley region of north-east Western Australia, the Speewah Fluorite Project boasts a JORC-compliant resource of 37.3 million tonnes at 9.1% calcium fluoride (CaF2), including a high-grade component. Fluorite, or fluorspar, is a critical mineral recently added to Australia’s Critical Minerals List, with no current domestic production. The project aims to produce acid-grade fluorspar (>97% CaF2), a key input for industrial chemicals, lithium-ion batteries, and semiconductor manufacturing, sectors vital to global supply chains.

Tivan’s Pre-Feasibility Study released in July 2024 highlighted robust economics, with a pre-tax NPV8 of $480.1 million and an IRR of 37.9%, reinforcing the project’s viability. The Australian Government’s support through a $7.4 million grant and Major Project Status further bolsters the project’s profile.

Governance, Funding, and Offtake Arrangements

Under the joint venture terms, Tivan will serve as the manager for a minimum of five years, overseeing all phases from development planning through to operations. Sumitomo’s investment will be staged across three tranches, with the flexibility to opt out of later stages, though protections exist to maintain a minimum equity floor.

Crucially, the parties have agreed on a term sheet granting JFC rights to acquire up to 100% of the project’s production, with 80% subject to a take-or-pay obligation. This arrangement provides a strong foundation for market certainty, although final binding offtake agreements remain to be executed.

Regulatory and Strategic Considerations

The joint venture’s progress is contingent on approvals from the Australian Government’s Foreign Investment Review Board (FIRB) and the Australian Competition & Consumer Commission (ACCC). These regulatory reviews are standard but critical steps that could influence timing and terms.

Beyond the immediate project, Tivan’s recent acquisition of the Sandover Fluorite Project positions the company as a dominant player in Australia’s fluorite sector, aiming to secure long-term supply chains for Asia’s industrial markets. The partnership with Sumitomo, a company with extensive global reach and diversified interests, signals confidence in the project’s strategic value.

Looking Ahead

With the joint venture agreements now binding, Tivan and Sumitomo embark on a critical phase of feasibility studies and project development planning. The next months will be pivotal as regulatory approvals are sought and detailed project financing and offtake contracts are negotiated. The Speewah Fluorite Project stands to become a cornerstone in Australia’s critical minerals landscape, with implications for supply security and industrial innovation.