Stake Will Enable TTR To Advance Offshore Mining Plan
US-based private equity firm Denham Capital Management has taken a stake in company Trans-Tasman Resources (TTR), which is mining offshore for iron ore from the west coast of New Zealand’s North Island.
TTR holds a prospecting permit covering 6319km of seabed in two offshore areas off the New Zealand coast. Initital prospecting work has found what the company describes as a “very large and low costs” iron ore resource.
Funds from the sale of shares to Denham will enable TTR to advance its plan to set up an offshore dredge mining operation combined with an offshore beneficiation plant located on a fixed rig. Ironsand would be dredged from the seabed, processed in the beneficiation plant, then slurried either to a vessel for shipment to Asia, or to a dedicated local onshore steel mill.
Denham director and head of metals and mining Bert Koth said TTR was in an outstanding position to help meet an expected global shortage of iron ore.
"Its operating and capital costs will be a fraction of those for land-based mining and its transport logistics suffer none of the constraints and costs faced by many, if not most, other iron ore projects."
TTR managing director Paul Berend said the partnership with Denham would enable TTR to fast track the development of its project without the costs and distractions associated with an early initial public offering (IPO).
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