Gadde Bissik Phosphates Operations SUARL, the Senegalese subsidiary of Avenira, signed the export rock phosphate supply agreement with Egypt-based privately owned international trading company Polyserve Import Export and Trade.
The Baobab rock phosphate product is destined for downstream phosphate fertiliser production.
Under the three-year offtake agreement, the buyer will initially purchase 120 000 Mtpa of rock phosphate from the Baobab project’s production, with the term extendable at the option of both parties.
Product will be delivered from the port of Dakar, with offtake pricing to be based on the global market price for equivalent rock phosphate product and set for semi-annual periods.
The agreement follows the offtake agreements announced in July with established international fertiliser companies Actatrade SA and Getax Agrifert DMCC, lifting the combined commitment to between 360 000 tpa and 480 000 tpa.
[quote]”Securing this additional agreement further demonstrates that there is good demand for quality rock phosphate product, as well as showing the market’s confidence in the Baobab project’s ability to produce and deliver a desirable product,” says Avenira MD Cliff Lawrenson.
Avenira continues to engage with other parties on further offtake arrangements set to cover the balance of planned annual production (500 000 tpa) which it expects to convert into formal agreements in the near term.
“It is remarkable that we have secured offtake agreements for most of the planned initial annual production for the first three years so early,” Lawrence enthuses.
“Having secured offtake agreements allows us to plan production carefully and subsequent offtake agreements will be structured to match production. We are encouraged by this early demand and moving as quickly as possible to a full mining concession to increase production and improve efficiency of operations,” he adds.