Zulu Lithium to commence operation in September

PREMIER Africa Minerals chief executive officer, Mr George Roach has expressed confidence that production at Zulu Lithium and Tantalum Project in Fort Rixon will begin at the end of September with the first shipment expected in October further ruling out another force majeure that recently threatened the deal.

Last week, the natural resource development company and Chinese investor — Canmax Technologies Co Limited resolved a contractual disagreement that threatened the spodumene concentrate supply deal.

Canmax is a producer of lithium electric materials and other related products.

Premier Africa Minerals and Canmax had been in recent weeks engaged in talks over a contractual disagreement that was threatening the implementation of the Fort Rixon lithium project.

Last year, Canmax provided US$35 million in pre-funding to enable the construction and commissioning of a large-scale pilot plant.

However, in June this year, the Chinese entity said it would scrap the agreement reached after Premier Africa Minerals missed the May 2023 timeline to supply spodumene concentrate.

Premier Africa Minerals then issued a force majeure notice, citing milling problems at the plant. After extensive talks to salvage the deal, the two parties reached an agreement. The amended agreement restores the arrangements between the two companies, withdrawing force majeure and default notices.

PREMIER African Minerals

Essential components of the amended deal are said to be the same as the original, with the companies agreeing on a new schedule for product delivery tied to the advance purchase amount and accrued interest.

Force majeure is a clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event happens. Canmax wanted to terminate the agreement, a development that could have negatively affected the Zulu Lithium project.

Speaking during a recent StockBox chat, a media platform for listed companies to connect with investors monitored by Business Chronicle, Mr Roach said he is confident that the new timelines would be met. He said the firm has always understood its obligation to provide spodumene concentrate Canmax.

With the deal back on track, he said timelines would be met. The intention is to have production in October. The original first shipment date was October 25. I am reasonably confident that this is realistic,” said Mr Roach.

“It’s a tight timeline, we will be working really hard but it’s realistic. I would like to see production before the end of September. I am hoping we will be well in advance (in terms of production). In case we are not able to meet the timelines, there are contingencies.”

He expressed optimism that there will be no further force majeure.

“I do not believe there will be another force majeure. We are beyond this now. I am pretty confident that the initial 1 000 tonnes per month that should be shipped during the course of November is going to be met. Canmax needs to have some certainty, some reasonable projection that is realistically attainable under the circumstances we find ourselves in.”-chronicle