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AVZ Minerals provide Manono Lithium and Tin Project operational update

Published by
Global Mining Review,


AVZ Minerals Limited has provided an operational update in relation to its flagship project, the Manono Lithium and Tin Project.

Highlights

  • Manono Special Economic Zone (MSEZ) decision expected end of May 2021.
  • Hydro-Electric Power Plant feasibility study validated by Ministry of Hydraulic Resources and Electricity.
  • AVZ actively engaging with newly appointed DRC government Cabinet.
  • Front End Engineering Design Study 70% complete.
  • CSA Global updating mineral resource estimate (MRE) and pit shell designs.
  • Roche Dure pit optimisation redesign to begin once MRE is completed.
  • Optimisation of definitive feasibility study now leading towards bankable feasibility study report.
  • All studies required for mining lease application completed.
  • Drilling of Carriere de l’Este orebody continues.
  • Construction of Camp Colline progressing well.
  • Project finance negotiations advancing.
  • Lithium hydroxide flowsheet development study awarded and progressing well.

AVZ Minerals Managing Director, Nigel Ferguson, said: “Buoyant market conditions continue with both spodumene concentrate and lithium chemical prices strengthening on the back of rising electric vehicle demand, just as international government policies advance the reduction of carbon emissions whilst securing strategic supply chains that feed domestic EV industries across the globe.”

“Both market and geopolitical factors have fuelled a steep increase in the SC6 price since the start of 2021, with reported prices in China up 56%. With expectations that structural supply deficits will remain and as the uptake of EV’s continues to increase around the globe, the current upward price trends for both spodumene concentrate and lithium chemical products are expected to continue.”

“As we previously announced, AVZ reached a significant milestone last month in March 2021 with more than 80% of our annual Manono Lithium and Tin Project’s spodumene concentrate production now committed under long-term binding offtake agreements.”

“These three offtake agreements contain formula pricing that references a basket of lithium chemical prices and underpinning floor price. Based on prevailing reference prices, the offtake formula pricing is expected to deliver a pleasing return to AVZ.”

“The finalisation of the three binding offtake agreements also satisfies a critical Condition Precedent for the Manono Project’s prospective financiers and with buoyant market conditions expected to continue, the company is in a strong position to selectively discuss further strategic offtake and downstream processing opportunities with a particular focus on new and emerging market penetration.”

“In addition, while tin represents a relatively small but growing portion of revenue for the Manono Project, the signing of AVZ’s first binding tin offtake agreement with Kalon Resources Limited confirms that another large international business is willing to secure supply from our flagship project.”

“The binding tin offtake agreement with Kalon Resources also comes at a time when the LME cash tin price has increased 46% since the start of 2021. Further technical studies and the granting of the mining license will further advance this towards banking the project which is due for completion in this current quarter.”

Read the article online at: https://www.globalminingreview.com/exploration-development/07052021/avz-minerals-provide-manono-lithium-and-tin-project-operational-update/

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African mining news Lithium mining news