prospect resources petalite lithium

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.

Arcadia has potential to be an exclusive supplier

Prospect Resources enters MoU for Arcadia off-take

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.”