The Donald project contains an “eye-popping” 2.6 billion tonnes of mineral resources at a grade of 4.4 per cent HM, which management says includes the world’s biggest zircon deposit.

The primary focus of the JV is to develop the huge Donald prospect, which features an impressive 825 million-tonne resource going 4.5 per cent HM with 17.8 per cent zircon, 7.2 per cent rutile, 28.4 per cent ilmenite, 21.1 per cent leucoxene and 1.7 per cent monazite.

The company notes the monster project is expected to churn out a stunning $3.87 billion in free cash during its estimated 41.5-year mine-life. Its recent definitive feasibility study (DFS) for the first phase of the operation also shows an after-tax net present value (NPV) of an appealing $852 million.

Some recent positive steps for the project include global engineering group Sedgman completing early-stage process plant works, obtaining approval for the accommodation village to be based in the local town of Minyip that sits about 15km west from the site. It has also begun short-listing contractors for mining services, transport and logistics contracts.

Both rare earths and heavy mineral sands are expected to be subject to heavy demand from industry in the coming decades due to their use in many of today’s products. So, the two companies will be aiming to benefit from their savvy decision to develop the huge Donald project at a time when pricing for each of the commodities is still subdued.

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