JOHANNESBURG (miningweekly.com) – ASX-listed Tawana Resources and SGX-listed Alliance Mineral Assets have executed a nonbinding in-principle term sheet for the offtake of tantalum concentrate from their joint venture (JV) Bald Hill lithium and tantalum mine, in the Eastern Goldfields of Western Australia.
An undisclosed tantalum industry specialist has agreed to buy a minimum of 600 000 lb of tantalum concentrate in aggregate from April 2018 to December 2020 or all of the standard grade tantalum concentrate produced at Bald Hill within the period if the delivery is less than 600 000 lb.
With the mine due to start production in the first half of 2018, the tantalum supply agreement was a significant milestone for the Bald Hill JV, Alliance CEO Tjandra Pramoko said on Thursday.
“At the same time, we are also continuing discussions with other third parties for sale of excess tantalum concentrate,” he said.
At the option of the buyer and subject to availability, the buyer may purchase additional/other materials, including low-grade concentrates and off-spec materials, beyond the 600 000 lb of tantalum concentrate.
The binding definitive offtake agreement will be negotiated within two months from the date of the term sheet.
The first lithium concentrate production is targeted for the first quarter of 2018 and first delivery anticipated in April 2018.
The project is fully funded to first shipment.