IperionX has got development green light for its US Titan project Pic: Getty Images
Mining
IperionX’s plans to re-shore sustainable, lower cost domestic titanium metal supply chain in the US is given a boost with key development permits for its Titan project in Tennessee.
IperionX Limited (ASX:IPX, NASDAQ:IPX) has received key development permits for the Titan project in Tennessee, which contains the largest JORC-compliant resource of titanium and rare earth rich mineral sands in the US.
The major development permits include the National Pollutant Discharge Elimination System (NPDES) Permit and Surface Mining Permit, which have now been issued by the Tennessee Department of Environment & Conservation.
IPX says residual regulatory requirements for the development of the Titan project are expected to be complete by the end of 2023.
Permit approval stem from more than two years of dedicated community engagement and education about the sustainable project, which has garnered strong community support.
IPX initiated a sustainability first approach to the project in January 2021, establishing an office in Camden, Tennessee, staffed with seven employees for transparent communication with stakeholders.
A 2022 Scoping Study also highlighted positive project economics including projected annual EBITDA of ~$117 million, after-tax NPV8 of $692 million, and after-tax IRR of 40%.
IPX aims to produce low carbon titanium for advanced industries including space, aerospace, electric vehicles, and 3D printing via an end-to-end business model, starting with the 100%-owned Titan project.
As one of the most advanced critical mineral projects in the US, Titan is considered fundamental to underpin the supply chain security of titanium and rare earths needed for these important industries.
IPX is also producing titanium metal powders from titanium scrap at its operational pilot facility in Utah and intends to scale production at a Titanium Demonstration Facility in Virginia.
The US relies heavily on foreign sources for over 80% of titanium minerals and nearly 100% of separated rare earth oxides.
However, the US government is working to reduce this foreign reliance to strengthen domestic material supply chains through government funding and incentives, which IPX says it will pursue.
IPX says these opportunities include the Defense Production Act Title III program and Department of Energy programs under the Inflation Reduction Act and Bipartisan Infrastructure Law support eco-conscious domestic production, reuse, and recycling of critical minerals.
CEO Anastasios (Taso) Arima says the permits are an important milestone for the company as it works to re-shore the titanium supply chain in the US.
“Successfully securing these key permits for the Titan Project – North America’s largest deposit of titanium and rare earth critical minerals – is an important milestone in our plan to re-shore critical material supply chains, with our key focus on building a sustainable and low-cost titanium mineral to metal supply chain,” he says.
“The IperionX team have done an outstanding job in progressing from mineral discovery to the grant of key permits in just three years, and we appreciate the significant support from our stakeholders in our Tennessee community with who we are committed to developing a world class operation that can play a key role in sustainably re-shoring American jobs and advanced industry.”
This article was developed in collaboration with IperionX, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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