Sheffield Resources Limited welcomes another important step ahead of a final investment decision for the Thunderbird Mineral Sands Project (Thunderbird) in Western Australia with Kimberley Mineral Sands Pty Ltd. (KMS) securing a binding 15 year power purchase agreement (Agreement) with Pacific Energy Pty Ltd. (PEL) for electricity supply to Thunderbird. Under the Agreement, PEL shall build, own and operate the power generation, LNG storage and regasification facilities for Thunderbird. PEL is a mature and established business specialising in the design, installation and operation of power generation facilities across Australia and has established a strong track record of delivering energy solutions for the Australian resources sector.

The power station is designed to accommodate a maximum demand capacity of 16MW and with LNG storage unit capacity of up to 10 days demand from the Thunderbird project. LNG will be trucked to the on-site storage and re-vaporisation facility supplied by PEL. The flexible, long-term power purchase agreement provides a stable power generation source for the Thunderbird Mineral Sands Project.

The Agreement is subject to a number of customary conditions precedent, including KMS making a final investment decision toward the development of Thunderbird and providing a Notice to Proceed in favour of PEL. Under the Agreement, KMS and PEL will also consider longer term enhancements including the investment in renewable energy solutions and expansion consistent with the expected production growth at Thunderbird.