Hyundai Steel and TNG sign non-binding MoU for Mount Peake vanadium project

Hyundai Steel is a large steel making company headquartered in Seoul. Photo: Louie Douvis

by Jonathan Barrett

Korea-based Hyundai Steel has entered into a non-binding memorandum of understanding for an offtake agreement and investment in resources hopeful, TNG .

Details of the MoU, which concerns TNG’s proposed Mount Peake vana­dium-titanium-iron project located in the Northern Territory, north-east of Alice Springs, are expected to be released to the Australian Securities Exchange on Monday morning.

TNG is in a trading halt pending the release of the details. Its share price has increased six-fold in the past 12 months, to last trade at 28¢ on Thursday, when trading was suspended.

The size of Hyundai Steel’s potential investment hasn’t been quantified. The MoU is being advertised as a means to help TNG secure funding to construct the Mount Peake vanadium project. Vanadium is an additive mostly used to improve steel. Hyundai Steel is a large steel making company headquartered in Seoul and is part of the Hyundai-Kia Automotive Group.

TNG has recently entered into a MoU with South Korean company Woojin and a subsidiary of South Korean steel giant POSCO, covering aspects of project development and financing.

Resources research house Break­away Research recently noted: “in the shorter term the POSCO E&C MoU ­covers potential funding and completion of the definitive feasibility study, a critical near-term step in advancing Mount Peake. One key now will be to progress these non-binding MoUs into binding agreements, which will add ­significant impetus to Mount Peake.”