PERTH (miningweekly.com) – Newly minted lithium producer Core Lithium has struck an 18 500 t spodumene concentrate offtake agreement with buyer Sichuan Yahua, with the spodumene to be supplied from the Finniss lithium project, in the Northern Territory.
The new offtake agreement was in addition to the existing binding offtake agreement for the sale of 300 000 t over four years.
Agreements were reached for the sale of the first parcel of spodumene concentrate of approximately 3 500 t, which is being produced during Finniss dense media separation (DMS) commissioning, and an additional 15 000 t of concentrate that will be produced from ore to be mined from the Grants pit.
“It is pleasing to be able to announce the contract for sale of our first concentrate products to Yahua who has been a long-term partner for Core and strong supporter of the Finniss project,” said Core Lithium CEO Gareth Manderson.
“We are pleased to put these mutually beneficial agreements in place which see us sell our high quality spodumene concentrate to a valued customer. The prepayment provides additional working capital and assists Core to manage our cash flow as we continue to ramp up operations.”
The first parcel will be sold to Yahua on a free-on-board basis and is expected to be ready for shipment by the end of April 2023. The additional 15 000 t of concentrate will be sold under a pre-payment arrangement. Payment for 80% of this volume is scheduled in April 2023, with the balance due upon shipment.
“Commencement of concentrate production early this year and the agreement for the first sale of concentrate from the Finniss mine demonstrates that Core continues to deliver against its milestones,” Manderson said.
The Stage 1 Finniss project, comprising an openpit operation and underground operation, would produce 175 000 t/y from a one-million-tonne-a-year plant.