4 Sheffield Resources Limited Annual Report 2024 Kimberley Mineral Sands (KMS) During the reporting period, through its 50% interest in Kimberley Mineral Sands Pty Ltd (KMS), Sheffield Resources Limited (Sheffield, the Company or the Group) completed construction of the Thunderbird Mineral Sands Mine (Thunderbird) in the Kimberley region of Western Australia, bringing into operation a significant long life asset for the region. KMS is a 50/50 joint venture between Sheffield and YGH Australia Investment Pty Ltd (Yansteel). Yansteel is a wholly-owned subsidiary of Tangshan Yanshan Iron & Steel Co. Ltd, a privately owned steel manufacturer headquartered in Hebei, China producing approximately 10mt per annum of steel products. Thunderbird is one of the largest and highest-grade zircon mineral sands deposits in the world and contains valuable minerals including ilmenite, zircon and leucoxene, which are extracted and exported as concentrates via the Port of Broome to global offtake partners. Construction activities at Thunderbird were completed during 2023, ahead of schedule and within budget. Given the backdrop of inflationary pressures and economic headwinds globally experienced throughout the period of construction, delivery of Thunderbird into production within the original $484 million funding envelope was a tremendous achievement. With Thunderbird construction complete, KMS has moved to transition from a developer to a mineral sands producer. Commissioning activities commenced in mid-2023, with waste stripping and movement ahead of planned initial mining activities. First ore production occurred in October 2023, ahead of schedule, with management and control of the processing plant transferred to the KMS team by EPC contractor GR Engineering Services. The maiden shipment of Thunderbird products to customers was completed in January 2024, with the first bulk shipment departing Broome in March 2024. Health and Safety A safe working environment and culture for all employees and contractors is paramount within the KMS operating environment. Reflecting the commitment to fostering a robust safety culture during the transition from construction to operations, one restricted work injury was recorded during the 2024 financial year, with no lost time injuries occurring. The construction phase of Thunderbird was completed with over a million hours worked lost time injury free and over 500,000 hours have been worked injury free since operations commenced in October 2023. Review of Operations Figure 1: Thunderbird Process Plant
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