Sheffield Resources rises as Thunderbird mineral sands operation has its wings clipped

An ailing mineral sands market and inefficiencies digging up dirt have pushed the operator of a Kimberley mine to trim approximately 30 roles. ASX-listed Sheffield Resources on Wednesday said it would shed about 20 per cent of the workforce from its jointly-owned Thunderbird mineral sands mine. West Perth-based Sheffield owns 50 per cent of Thunderbird and is the mine’s operator, while China’s Yansteel holds the other half. The West Australian understands Thunderbird’s workforce pre-cull numbered around 125. The job cuts were part of a “business improvement initiative” Sheffield started in October to find ways to lower costs and boost productivity amid “subdued market conditions”. “A review of ore mining and in-pit processing has also commenced and is considering options to reduce mining costs and increase throughput to ensure sufficient feed can be produced to fill the process plant,” Sheffield stated. “Overburden removal productivity has been lower than expected since the commencement of mine operations at Thunderbird.” This is set to improve in “early 2025”, according to the company. “Additional initiatives to maximise throughput at the process plant will be incorporated into an implementation plan during the March 2025 quarter.” Sheffield’s investors were pleased with the update. The company’s shares closed 5.7 per cent higher. Operational issues at Thunderbird and a downturn in the mineral sands market has dragged Sheffield’s stock about two-thirds lower over the past year. Prices of mineral sands have been broadly whacked by a slowdown in Chinese manufacturing activity. Iluka Resources, the largest mineral sands miner on the ASX, has seen its share price drop about 30 per cent since May. Mineral sands encompass a basket of fine mineral ores that have a wide variety of applications. Thunderbird produces zircon concentrate, which is predominately used in ceramics, and ilmenite concentrate — a precursor for many white-coloured products like sunscreen, toothpaste and paint.