PERTH (miningweekly.com) – Critical minerals developer AVZ Minerals has signed a binding offtake agreement with shareholder Yibin Tianyi Lithium Industry Co for the supply of spodumene concentrate from the Manono lithium and tin project, in the Democratic Republic of the Congo.
Yibin Tianyi has agreed to purchase up to 200 000 t/y of spodumene concentrate for an initial three-year term following the start of production, with an option to extend the offtake agreement for an additional two years.
“We are very pleased to conclude our discussions with Yibin Tianyi and to sign another binding offtake agreement for spodumene concentrate to a Chinese converter,” said AVZ MD Nigel Ferguson.
“This agreement takes our spodumene concentrate binding offtake commitments to more than 80% of the project’s annual production, which is a massive endorsement for the Manono project and one that satisfies an important condition precedent for our prospective project financiers.”
AVZ previously signed an offtake agreement with a subsidiary of China’s largest lithium compounds producer, Gangfeng Lithium for the sale of up to 160 000 t/y of spodumene concentrate over an initial five-year period, with an option for a further five-year extension.
The company has also inked a three-year, 6 000 t/y tin concentrate offtake agreement with Kalon Resources over the Manono project.
A definitive feasibility study into Manono has estimated that it would produce around 700 000 t/y of 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 will account for $41.85-million and $46.54-million worth of investment, respectively.