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Western Australia proposes change to state deal to support Tronox ops

Western Australian Premier Mark McGowan introduced legislation to vary the Mineral Sands (Cooljarloo) Mining and Processing Agreement Act of 1988, which would allow Tronox Ltd. subsidiary Tronox Management Pty Ltd. to sustain its operations and pursue new deposits, according to an Oct. 11 media statement.

Under the state agreement, Tronox operates a heavy mineral sands mine at Cooljarloo, dry processing and synthetic rutile plants near Muchea, and a titanium dioxide pigment plant at Kwinana.

The variation will allow the company to pursue new sources of feedstock for its Muchea and Kwinana processing facilities from tenements not covered by the agreement.

The move will potentially lead to the development of two new mines at Dongara and Cooljarloo West, generating about A$220 million in new CapEx and 110 construction jobs, subject to final investment decisions by the company.