Speewah Fluorite JV Faces Critical Tests Despite Strategic Japanese Backing
Tivan and Sumitomo Corporation have formalised their joint venture for the Speewah Fluorite Project, securing a strategic investment from Japan’s JOGMEC. This partnership marks a significant step towards advancing the project’s feasibility and strengthening Australia-Japan critical minerals ties.
- Incorporated joint venture established between Tivan and Sumitomo Corporation
- Japan Fluorite Corporation invests $5.3 million for 7.5% equity in the JV
- JOGMEC acquires 49% stake in Japan Fluorite Corporation, becoming a strategic partner
- Funds allocated to advance feasibility study for acid-grade fluorspar production
- Partnership underscores strong Australia-Japan collaboration in critical minerals
Formalising a Strategic Partnership
Tivan Limited (ASX – TVN) and Sumitomo Corporation have officially established their incorporated joint venture (IJV) to develop the Speewah Fluorite Project in Western Australia. This milestone follows the satisfaction of all conditions precedent, including regulatory approvals and project restructuring, culminating in a $5.3 million equity injection by Japan Fluorite Corporation (JFC), a Sumitomo subsidiary. This initial investment secures JFC a 7.5% stake in the IJV, earmarked to fund a comprehensive feasibility study.
The Speewah Project aims to produce acid-grade fluorspar with purity exceeding 97% calcium fluoride, targeting export markets that rely heavily on this critical mineral. Fluorspar is essential for various industrial applications, including aluminium production and chemical manufacturing, making the project strategically important.
JOGMEC’s Landmark Involvement
Adding significant weight to the venture, the Japan Organization for Metals and Energy Security (JOGMEC), a Japanese government agency focused on securing stable resource supplies, has acquired a 49% equity interest in JFC. This positions JOGMEC as a strategic partner in the Speewah Project, reflecting Japan’s commitment to securing critical minerals through international partnerships.
The involvement of JOGMEC and Sumitomo Corporation not only brings financial backing but also technical expertise and geopolitical support. The partnership was forged after extensive due diligence, including technical workshops and site visits, underscoring the project’s viability and strategic importance.
Implications for Australia-Japan Relations and Project Development
This joint venture exemplifies a model of private-public risk sharing, with contributions from Australian and Japanese governments alongside corporate partners. It strengthens the bilateral relationship between Australia and Japan in the critical minerals sector, a key area of economic and strategic cooperation.
Tivan’s Executive Chairman, Grant Wilson, highlighted the significance of securing JOGMEC’s involvement, noting the collaboration with their technical team in Tokyo and the robust pathway towards a Final Investment Decision. The funding from this initial tranche will accelerate the feasibility study, a crucial step in advancing the project towards production readiness.
Looking ahead, the joint venture plans to explore further equity investments and partnerships to fully finance the project’s development. The Speewah Fluorite Project’s progress will be closely watched by investors and industry observers, given its potential to supply a critical mineral amid growing global demand.
Bottom Line?
With JOGMEC onboard, the Speewah Project is poised to become a cornerstone of Australia-Japan critical minerals collaboration.
Questions in the middle?
- What are the timelines and milestones for completing the feasibility study and reaching Final Investment Decision?
- How will future funding tranches be structured, and what role will other investors play?
- What impact will JOGMEC’s involvement have on project governance and export markets?
