AVZ secures tin offtake
PERTH (miningweekly.com) – Junior AVZ Minerals has signed a binding three-year offtake agreement for 6 000 t/y of tin concentrate from its Manono lithium and tin project, in the Democratic Republic of Congo.
The agreement was struck with Kalon Resources, a wholly-owned subsidiary of Noble Group Holdings, which specializes in commodity trading and supply chain management.
The offtake accounted for some 43% of the expected tin concentrate production from Manono.
“After an unexpected delay in finalising this contract, we are very pleased to have finally signed with Kalon, our first tin offtake agreement, just weeks after having signed our second lithium offtake agreement that cumulatively provides binding commitments for more than 50% of our saleable lithium product,” said AVZ MD Nigel Ferguson.
“Given the rising London metal exchange cash price of tin metal, up some 30% year to date, this offtake agreement is significant for the Manono project and also significant given that Kalon is a considerable participant in the tin industry.
“While this agreement represents a relatively small, but growing, portion of revenue for the Manono project, it does confirm another large international business is willing to secure future supply from the project.”
Ferguson said that similar to the recent lithium offtake agreements, the tin offtake agreement would assist AVZ in meeting certain conditions precedent required from prospective financiers for the Manono project.
A definitive feasibility study into Manono has estimated that it would produce around 700 000 t/y high grade lithium and 45 475 t/y of primary lithium sulphate over a 20-year mine life.
The project is expected to require a capital investment of some $545.5-million, which will include transport upgrades and the rehabilitation of the Mpiana Mwanga hydroelectric power plant, which would account for $41.85-million and $46.54-million worth of investment, respectively.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation