Sun Cable inks deal to supply “24/7 renewables” to Darwin minerals processing plant

Sun Cable, the developer of one of the world’s largest solar, battery and transmission projects in Australia’s Northern Territory, has inked a tentative deal to supply renewable energy to a critical minerals processing facility proposed for development near Darwin.

The non-binding deal with ASX-listed resources company Tivan comes in the midst of a sales process for Sun Cable, initiated by administrators after the renewable developer’s billionaire backers Andrew Forrest and Mike Cannon-Brookes fell out over the business strategy.

Despite these troubles and Sun Cable’s unexpected descent into administration, administrators FTI Consulting last month reported “multiple parties” had expressed interest in buying the company, above and beyond Forrest and Cannon-Brookes.

Of particular interest to suitors is the company’s core project, the massive Australia-Asia PowerLink, which proposes 20GW of solar, up to 42GWh battery storage, an 800km transmission line to Darwin, and a 4,200km sub-sea cable to export power to Singapore.

Tivan, itself in the midst of a three-month “Reset, Review, Renew” phase including a change of name and management, in February reached an agreement with the Northern Territory government to build a processing facility at the Middle Arm Sustainable Development Precinct in Darwin.

Tivan’s plans are to use the Middle Arm Darwin facility to process magnetite concentrate produced at its two large-scale its vanadium, titanium and iron ore projects, one in Western Australia and one at Mount Peake in Central Australia.

The company’s board said late last week that it had signed a one year non-binding letter of intent with Sun Cable to progress commercial and technical discussions on a potential offtake of 200-300 MW of renewable electricity from the AAPowerLink project to power the Tivan Processing Facility (TVF).

The company says the new agreement will see it work together with Sun Cable to develop an indicative renewable energy supply and commercial strategy for the .

The company had planned as far back as 2019 to build a facility to process the minerals from its Mount Peake project, but faced a backlash over concerns about wastewater being discharged into Darwin Harbour, according to this ABC News report.

This led to a change of plan in late 2021, with the company – then called TNG Limited – announcing it would build the processing plant alongside the proposed mine in Central Australia.

In comments on the company’s recent decision to revert to its plans for a Middle Arm processing facility, Tivan executive chair Grant Wilson said the company had an obligation to “earn and maintain a social licence” to operate at the Darwin location.

“I fully expect Middle Arm will emerge as the pre-eminent sustainable development precinct in Australia in the decade ahead,” he said.

In comments last week, Wilson said the link-up with Sun Cable goes to further demonstrate Tivan’s commitment to sustainability principles, and to minimising the environmental impacts of the processing plant.

“By partnering with Sun Cable, we are endorsing and facilitating the proposed provision of large-scale renewable energy to the Precinct,” Wilson said.

“The Letter of Intent also marks the start of a strategic partnership, reflecting philosophical alignment, natural synergies and a shared commitment to tackle some of the world’s most challenging and important problems.

“Together, at scale, Tivan and Sun Cable can put the Territory at the global forefront of critical minerals processing and the energy transition.”

Sun Cable’s CEO David Griffin said the agreement between the two companies was an important milestone for then both, as well as for the Northern Territory.

“The provision of 24/7 dispatchable, renewable electricity can underpin industrial processes, enabling a new wave of green industrial development,” Griffin said.

“Sun Cable is delighted to be developing a relationship with Tivan and supporting their vision to ensure sustainable development of key critical mineral projects in the Northern Territory.”