Aussie Company Surefire Resources Sets Sights on Saudi Arabia
A flurry of Aussie companies are eyeing up the Arabian Peninsula as the race to source the necessary minerals to reach net-zero continues.
This heightened attention comes as Saudi Arabia recently acknowledged its need for more seasoned mining professionals to aid in the development of its metals and mining sector. Despite encountering some challenges, particularly with the scaling back of the massive US1.5T housing project known as “The Line”, the nation’s drive for advancement remains undeterred.
Saudi Arabia has set forth a vision to create “cities of the future”, combining modern high-tech communities and offering attractive incentives for businesses considering operations there, attracting miners from around the world.
One such incentive is the Kingdom’s commitment to coverup to 75% of the eligible costs needed for a company to operationalize a mineral processing project. Saudia enjoys low-cost power and fuel, has a substantial steel sector with a demand for vanadium oxide, and generally possesses the necessary funds to offer lucrative incentives.
It therefore comes as no surprise that companies such as Surefire Resources are taking the bait – with the company recently signing two memorandums of understandings (MOUs) with the Saudi Ministry of Investment (MISA) and two private Saudi companies. The MOUs aim to finalize binding agreements for a joint venture (JV) that will facilitate investment into Surefire’s flagship project, Victory Bore vanadium-iron. The JV also aims to develop a mineral processing facility in Saudi Arabia to process magnetite concentrate from the Victory Bore operation in Western Australia.
If the JV materializes and the projects are developed, each company could own up to a 50% stake in both operations. Negotiations to finalize the details of the JV are currently underway.
The MOU with MISA offers Surefire various support measures, including assistance in locating suitable land for processing facilities, introducing the company to potential partners, and helping secure binding finance and development agreements. The management’s goal is to mine the ore from Victory Bore, beneficiate it to produce a clean magnetite iron concentrate, and then ship it to Saudi Arabia to take advantage of lower operational and capital costs for downstream processing.
Mr Paul Burton, Surefire Resources managing director said “This is another important step for the company in its approach to developing the Victory Bore Project. This MOU will be worked through concurrently and further announcements will be provided once matters progress with RASI. “We look forward to working closely with RASI along with our work with Ajlan.” He added.
Also commenting on the agreement, Meshary AlAli AlDehashi, chairman of Rasi Investment Co. said, “This MOU for investment will contribute to achieving SUREFIRE – RASI goals to support and enhance local content by localizing some mining services. This will help realize the goals of Saudi Vision 2030, which focuses on transforming the Kingdom into a major mining hub.”
The company’s project, Victory Bore, has a mineral resource of 465Mt at 0.3% vanadium oxide, 5.12% titanium oxide, and 17.7% magnetite iron. It has a reserve of 93Mt at slightly higher grades and a concentrate grade of 1.43% vanadium oxide.
Surefire aims to produce 1.25Mt per annum of a vanadium-titanium magnetite concentrate from the project. Using a downstream process, the company plans to convert the upgraded ore into a variety of sought-after products.
Victory Bore also contains a high-grade aluminium zone situated between two magnetite zones at the project. The company estimates a 37Mt resource at a grade of 25%, providing it with an additional opportunity to produce high-purity alumina (HPA).
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