China’s Ganfeng expands lithium offtake arrangements at Mt Marion Project

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Mt Marion Lithium Project Image credit: www.neometals.com.au

Neometals Ltd (NMT) and Mineral Resources Limited (MIN) have announced that Ganfeng, the second largest lithium producer in China, has agreed to expand the scope of the offtake agreements at Mt Marion Project after metallurgical test work has identified that an additional spodumene product can be generated through the addition of a flotation circuit to the current beneficiation plant.

Mt Marion Lithium Project Image credit: www.neometals.com.au
Mt Marion Lithium Project
Image credit: www.neometals.com.au

The new arrangement will see Ganfeng take-or-pay an additional 80,000 tpa of spodumene concentrate of between 4% and 6% Li2O content, generated by floatation at agreed discounts to the market prices for the 6% Li2O product.

“The expansion remains conditional of RIM and MIN (via its wholly owned subsidiary, Process Minerals International Pty Ltd) agreeing and finalising the necessary variations to the Mining Services Agreement to cover the production of the lower grade product, which will include the addition of a floatation plant at the Mt Marion Project,” Neometals and Mineral Resources said in a joint statement to the ASX.

“The variation will be concluded on completion of a detailed metallurgical test program currently being undertaken.”

Adertisement

Under the initial offtake arrangements between Ganfeng and Reed Industrial Minerals (RIM) – the jointly owned subsidiary of Neometals and Mineral Resources – Ganfeng had agreed to take-or-pay 100% of the 6% Li2O, chemical grade spodumene concentrate produced from the Mt Marion Project.

The Mt Marion Lithium Project is located approximately 40km south west of Kalgoorlie, Western Australia.