Namibia-focused Montero Mining and Exploration has entered into a nonbinding memorandum of understanding (MoU) with Jiang Xi Yun Lithium of China for joint cooperation and development of lithium production in Africa.
Jiang Xi Yun is focused on the supply of battery grade lithium products to the electric vehicle market in China. The company currently has a production of 20 000 t/y of lithium carbonate and is targeting 40 000 t/y by 2020.
In terms of the agreement, Jiang Xi Yun will sign a long-term offtake agreement with Montero, as well as provide beneficiation technology and financing support.
Montero will supply Jiang Xi Yun with long-term lithium production from its Namibia projects and it will also have the opportunity of investing in Jian Xi Yun’s upstream beneficiation plant, lithium carbonate and lithium hydroxide facilities in China.
“Jiang Xi Yun Lithium has already made a significant investment in the development of lithium refining facilities in China and is continuing to expand these with a view to becoming a major supplier of lithium. It wishes to supplement its current supply with lithium from Africa which is the focus of our MoU,” said Montero president and CEO Tony Harwood.
Montero trades on the TSX-V and has three lithium exploration and development projects in Namibia. The current exploration programmes are targeting National Instrument 43-101-compliant resources and the exploration of additional lithium targets in that country.