Premier African Minerals, a mining and exploration company listed on the AIM stock exchange, has revealed that its Zulu lithium processing plant is set to commence operations soon after successfully running with the primary ore feed. CEO George Roach announced the milestone, highlighting the ongoing optimization of new components within the plant.
While expressing encouragement at the plant’s performance exceeding expectations, Roach acknowledged the challenges posed by certain system and control issues currently affecting operations. He assured stakeholders that Premier anticipates plant operations to stabilize over the coming days as these issues are addressed by the plant operator and contractor. The company aims to achieve continuous plant operation, as initially stated, before the end of February 2024.
Roach emphasized Premier’s commitment to providing a comprehensive update on the situation by the end of February 2024, shedding light on both the progress made and the challenges faced during this crucial phase.
The urgency to ensure the plant’s operational efficiency stems from Premier’s offtake agreement with Canmax Technologies Co., Ltd. Under the agreement, Canmax pre-purchased US$34,644,385 worth of lithium spodumene concentrate from Premier. This advance payment was intended for the construction and commissioning of the Zulu plant. In light of Premier’s failure to deliver the agreed monthly lithium spodumene quantities for November and December 2023, Canmax has triggered an outstanding balance of US$3 million, with a monthly payment of US$1.5 million being carried forward.
To address this, Roach detailed that, as per the agreement, the interest rate for the outstanding balance of the prepayment amount would increase to 12% per annum from December 1, 2023.
Premier African Minerals remains focused on resolving operational issues swiftly to meet contractual obligations and ensure the successful operation of the Zulu lithium processing plant. The forthcoming update is anticipated to provide a comprehensive overview of the company’s efforts and achievements in this critical endeavor.
