Tivan inks deal with Japanese industrial giant Sumitomo

Territory company Tivan has inked a significant deal with a leading Japanese organisation. Read what it could mean.

Northern Territory company Tivan Limited has announced a strategic alliance agreement with Japanese-based Fortune 500 company Sumitomo Corporation.

The agreement is a foundation for the development, financing and operation of the Speewah Fluorite Project in Western Australia’s East Kimberley region.

It is the first such agreement Sumitomo Corporation in Australia’s critical minerals sector.

Under the agreement, Tivan and Sumitomo will negotiate a binding joint venture agreement with Sumitomo to be the sole distributor and agent to market Speewah’s commercial grade fluorspar product in Asia, with prescribed tonnage reserved for Japanese customers.

Tivan executive chairman Grant Wilson said the collaboration positioned Speewah as a globally significant, stable and long-term source of high-grade fluorite.

Fluorite is a critical feedstock for semiconductor manufacturing and the electric vehicle battery supply chain.

Global fluorspar prices have made historical highs this year amid supply constraints and reserve depletion in China.

Mines Minister Mark Monaghan. Picture: Pema Tamang Pakhrin

The recent addition of fluorine to the federal government’s critical minerals list highlights the importance of the Speewah fluorite project.

With the global fluorspar market projected to face a structural deficit from 2025, the Strategic Alliance between Tivan and Sumitomo Corporation is poised to play a crucial role in meeting the growing demand in Asia.

Mr Wilson said the parties intended to negotiate and enter into a binding joint venture agreement by December 31, 2024.

This includes an agreement on equity interests and contributions to the joint venture.

During this period, the parties will negotiate on an exclusive basis, inclusive of Japan Organisation for Metals and Energy Security and relevant Japanese government agencies.

“Over the past year Tivan has prioritised Japan as an enduring and trusted partner to Australia,” Mr Wilson said.

“Our Strategic Alliance with Sumitomo Corporation is the culmination of these efforts.

“Sumitomo is a company and group that we deeply respect, with foundational principles that date back over 400 years. We look forward to progressing the Speewah Fluorite Project together, with enterprising spirit and a common vision of shared prosperity.”

Meanwhile, the Territory Government has announced 41 projects from 29 companies, including Tivan, have received a share of $4m in the latest round of exploration grants through the Resourcing the Territory program.

Mining Minister Mark Monaghan said the scheme had significantly boosted exploration in the Territory.

“Industry confidence in our resources sector has never been so high, bringing with it interstate and global investment and new work opportunities,” he said.

Tivan’s share price climbed 8.9 per cent to 6.1 cents at 4pm on Friday.