The Australian resource company TNG has signed a memorandum of understanding (MOU) with Hyundai Steel in connection with the Mount Peak Vanadium-Titanium-Iron Project, located near to Alice Springs in the Arunta Province of Australia's Northern Territory.

According to TNG, the Mount Peake Project comprises exploration licences covering over 1,900 sq km and is estimated to hold up to 160Mt of resources of which 23% is iron ore (Fe), 5% titanium and 0.28% vanadium.

Having Hyundai Steel involved is considered a 'cornerstone investment' and a major step forward for the project, which will start production next year.

TNG's managing director Paul Burton said that Hyundai Steel is a major steel and automotive conglomerate and that the MOU reflects the South Korean steelmaker's interest in the Mount Peak Project. He said that TNG's engagement with Hyundai might lead to additional binding agreements going forward and that Hyundai was obviously interested in the project's iron ore, vanadium and titanium resources in relation to its automotive business. Burton said it would be working closely with all of its business partners and expects the latter half of 2014 to be very busy, leading up to starting production on site in 2015.