Tivan and Sumitomo Corporation form strategic alliance for Speewah Fluorite Project

Tivan Limited (ASX: $TVN) has signed a Strategic Alliance Agreement with Sumitomo Corporation, a leading Japanese trading house and Fortune Global 500 company, to negotiate a binding joint venture agreement for the development, financing, and operation of the Speewah Fluorite Project in the East Kimberley region of Western Australia. The agreement establishes Sumitomo Corporation as the sole distributor and agent to market the commercial grade fluorspar produced at Speewah, with a focus on the Japanese market. The joint venture aims to provide a stable and long-term source of supply of high-grade fluorite, suitable for use in semiconductor manufacturing and the electric vehicle battery supply chain. The parties intend to finalize the binding JV Agreement in 2024, including agreement on equity interests and contributions to the joint venture.

Executive Chairman's perspective on the strategic alliance

Tivan Executive Chairman Mr Grant Wilson stated, 'Over the past year Tivan has prioritised Japan as an enduring and trusted partner to Australia. 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.'

Strategic Alliance Agreement and Project Outlook

The Strategic Alliance Agreement between Tivan and Sumitomo Corporation sets the stage for the development, financing, and operation of the Speewah Fluorite Project, aiming to address the global fluorspar market's forecasted structural deficit from 2025. The agreement positions Sumitomo Corporation as the exclusive distributor for the Asian market, with a focus on Japan, leveraging Tivan's significant high-grade fluorite resource. The joint venture's objective is to establish a stable and long-term supply of high-grade fluorite, catering to the growing demand from semiconductor and electric vehicle battery manufacturing. The upcoming binding JV Agreement in 2024 is expected to solidify the equity interests and contributions to the joint venture, marking a significant milestone in Tivan's pursuit of a strategic partnership and the development of the Speewah Fluorite Project.