VANCOUVER (miningweekly.com) – TSX-V-listed Meridian Mining has secured an offtake agreement with Brazil's second-largest ferromanganese alloy manufacturer, Grupo Maringa, for 38 000 t of manganese, produced at the company's Brazil Manganese Corporation (BMC) project.
The miner advised that, of the total volume, 20 000 t would be prepaid in three tranches, with the first prepayment received in October.
"Grupo Maringa has been a valued and growing Meridian customer for over two years. Our ability to supply high-quality manganese ore on a consistent and reliable basis during that time has now translated into Maringa wanting to lock-in supply for 2018," stated Meridian president and CEO Anthony Julien in a press release.
According to Julien, the stronger Brazilian economy of late has translated to improved sales and production for Grupo Maringa.
"Meridian's high-quality manganese ore is a key input for their production needs and to enable Maringa to fulfil the rising demand for their products. Maringa has therefore increased their purchasing commitment by 210% for 2018 by way of an offtake arrangement with Meridian amounting to 38 000 t for 2018."
Manganese deliveries will take place from November through to December 2018.
Meridian is currently commissioning the Jaburi plant, which will enable it to ramp up production in the coming months. This has enabled the company to increase its sales and offtake arrangements for 2018.