African lithium developer, Prospect Resources has secured a new long-term offtake partner for its Arcadia Lithium Project.
Following on from the MoU announced on in April 2020, Prospect Resources has now entered into an offtake agreement with Sibelco N.V, a global leader in industrial minerals.
The seven-year agreement is for up to 100,000 dmt per annum of high quality, ultra-low iron petalite concentrate, resulting in a total of up to 700,000 dmt over the lifetime of the contract.
The pricing formula for the agreement is linked to the end customer sales contracts with minimum pricing provisions. 100% of the Company’s 2019 DFS petalite production for the first seven years is now covered by offtake agreements.
Prospect’s md, Sam Hosack says:
“I am pleased to announce that we have signed an offtake agreement with Sibelco for Arcadia’s premium ultra-low iron petalite.
“Sibelco is the largest distributor of ultra-low iron petalite in Europe and possibly the world and we believe that this is the largest ultra-low iron petalite offtake agreement ever signed.
“Sibelco is a global industrial minerals business, with annual turnover of some €3.5 billion. Once in production, Prospect Resources t is expected to be the largest ultra-low iron petalite producer in the world.”