Risks and Rewards: What Tivan’s Third Partnership with Sumitomo Means for Molyhil
Tivan Limited and Sumitomo Corporation have signed a Memorandum of Understanding to explore collaboration on the Molyhil Tungsten-Molybdenum Project in Australia's Northern Territory, marking their third joint initiative in critical minerals development.
- MoU signed between Tivan and Sumitomo for Molyhil Project collaboration
- Molyhil hosts 12,100 tonnes of tungsten trioxide and 4,400 tonnes of molybdenum
- Third partnership following Speewah and Sandover Fluorite Projects
- Focus on development, funding, marketing, and operation cooperation
- Plans for staged joint venture leveraging synergies with adjacent projects
Strategic Partnership Expands
Tivan Limited (ASX, TVN) has taken a significant step forward in its critical minerals ambitions by signing a Memorandum of Understanding (MoU) with Sumitomo Corporation, a Fortune Global 500 Japanese trading house. This agreement centers on the Molyhil Tungsten-Molybdenum Project in the Northern Territory, a site rich in minerals vital to modern technology and clean energy sectors.
The MoU outlines a framework for good faith discussions on potential collaboration across exploration, development planning, funding, construction, marketing, and operation of the Molyhil Project. While non-binding, this agreement signals a deepening relationship between the two companies, building on their existing partnerships at the Speewah and Sandover Fluorite Projects.
Project Highlights and Resource Potential
Acquired by Tivan in September 2025, the Molyhil Project boasts a JORC-compliant mineral resource estimate of approximately 4.65 million tonnes grading 0.26% tungsten trioxide (WO3) and 0.09% molybdenum, translating to 12,100 tonnes of WO3 and 4,400 tonnes of molybdenum. Both metals are classified as critical minerals by the Australian government and key global economies due to their strategic importance and supply chain vulnerabilities.
Located about 220 kilometers northeast of Alice Springs, Molyhil offers unique development synergies with the adjacent Sandover Fluorite Project, also under Tivan’s stewardship. The companies envision a centralized multi-commodity precinct that could share infrastructure, processing facilities, and logistics, enhancing operational efficiency and reducing costs.
Advancing Development and Collaboration
Tivan is actively progressing economic and technical studies, including metallurgical testwork and flowsheet development, to support proposed mining and processing operations. The company plans to develop Molyhil as a staged joint venture with Sumitomo, mirroring the risk-sharing and collaborative approach that has propelled the Speewah Fluorite Project.
Sumitomo’s involvement brings not only capital and operational expertise but also access to Japanese government agencies, potentially facilitating offtake agreements and strategic support. This partnership aligns with broader geopolitical trends emphasizing secure supply chains for critical minerals essential to defense, automotive, semiconductor, and clean energy industries.
Looking Ahead
While the MoU sets a promising foundation, formal commercial agreements remain subject to negotiation. The exclusivity granted to Sumitomo during the MoU term underscores the seriousness of the collaboration, but both parties retain flexibility. Tivan’s Executive Chairman, Grant Wilson, highlighted the company’s commitment to building a strategically important critical minerals precinct in central Australia, strengthening bilateral ties between Australia and Japan.
As Tivan advances its studies and stakeholder engagement, the market will be watching closely for updates on joint venture agreements, project timelines, and financing arrangements that could unlock the full potential of Molyhil and its neighboring projects.
Bottom Line?
Tivan’s expanding alliance with Sumitomo positions the Molyhil Project as a cornerstone in Australia’s critical minerals landscape, but the path to commercialisation hinges on forthcoming agreements and study outcomes.
Questions in the middle?
- What are the anticipated timelines for finalising a binding joint venture agreement?
- How will the collaboration impact project financing and capital requirements?
- What role will government support play in accelerating Molyhil’s development?
