State Agreement variation supports Tronox operations

by WA Government News | Oct 11, 2017

  • Government and Tronox agree to vary mineral sands State Agreement
  • Variation allows Tronox to sustain its operations and pursue new deposits

The Western Australian Government has acted to secure the future of one of the State's most significant, value-adding mineral projects through the variation of a long-standing State Agreement.

Premier Mark McGowan has today introduced legislation to vary the Mineral Sands (Cooljarloo) Mining and Processing Agreement Act 1988 into State Parliament.

Under the State Agreement, Tronox Management Pty Ltd operates a heavy mineral sands mine at Cooljarloo, dry processing and synthetic rutile plants near Muchea, and a titanium dioxide pigment plant at Kwinana. 

Titanium dioxide pigment is a whitener and opacifier used in a vast array of products, including coatings, plastics, paper and printing ink.

This variation will allow Tronox to pursue new sources of feedstock for its Muchea and Kwinana processing facilities from tenements currently not covered by the State Agreement.

This potentially includes the development of two new mines at Dongara and Cooljarloo West, which would generate about $220 million in new capital expenditure and 110 construction jobs. This is subject to final investment decisions by the company.

Comments attributed to Premier Mark McGowan:

"The integration of Tronox's operations make it one of our most significant value-adding projects, with the processing of ilmenite into titanium dioxide pigment increasing its value by about 15 times.

"Tronox's operations provide a substantial contribution to the State's economy, including more than 600 direct jobs, over $7 million in annual royalties, and about $250 million spent on local goods and services each year.

"This variation will provide Tronox with greater flexibility to remain competitive in the global market by allowing the use of additional feedstock and thereby ensuring production at its State Agreement facilities is maintained."

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