By Wahard Betha
ASX-listed resources group Sovereign Metals has entered into a non-binding Memorandum of Understanding (MOU) with leading rutile market player Chemours Company (Chemours) for the potential supply of 20,000 tonnes of natural rutile per annum from the Company’s Kasiya Rutile Project (Kasiya).
Chemours is a leading provider of performance chemicals that are key inputs in end-products and processes across a variety of industries and operates 29 manufacturing sites serving approximately 3,200 customers in approximately 120 countries.
Sovereign’s Managing Director Julian Stephens comments: “To have signed an MOU for the supply of natural rutile to Chemours, a global leader in the titanium dioxide pigment industry, is a true testament to the quality and strategic nature of our world-class Kasiya Project in Malawi.”
“We are excited to be working with Chemours as a future off-take partner for our premium, low carbon-footprint rutile products.”
The MOU covers the potential supply of 20,000 tonnes per annum of natural rutile at Stage 1 nameplate capacity and an option to take additional product when Kasiya reaches Stage 2 nameplate capacity.
Stephens explains that the volumes of rutile may be varied up or down by mutual agreement and pricing will reference market prices of the day both to be included in the definitive agreement.
He says: “The MOU is non-exclusive and non-binding and remains subject to negotiation and execution of the definitive agreement.”
“The MOU will expire two years from the execution date but can be extended by agreement by both parties should a definitive agreement not have been reached by that time.”
Chemours’s Titanium Technologies segment is one of the world’s largest producers of high-quality titanium dioxide (TiO2) pigment and aspires to be the most sustainable TiO2 enterprise in the world.
Using its proprietary chloride technology pioneered in 1931 and improving ever since, Chemours provides innovative TiO2 solutions for coatings, plastics, and laminates.
The company operates four TiO2 pigment production facilities: two in the United States, one in Mexico, and one in Taiwan totaling TiO2 pigment nameplate capacity of 1.25 million tonnes per year.
In the year ended 31 December 2021, Chemours’ Titanium Technologies segment reported net sales of US$3.4 Billion.
Kasiya is the world’s largest rutile deposit and one of the world’s largest flake graphite deposits.