AVZ Minerals signs first tin offtake agreement for Manono project
Emerging Democratic Republic of Congo producer AVZ Minerals (ASX: AVZ) has secured a three-year offtake agreement for the sale of 600 metric tonnes per annum of tin concentrate from the Manono lithium and tin project to industrial metals trader Kalon Resources.
The agreement is the first tin sale from Manono and equates to approximately 43% of the total tin concentrate available for sale from the project.
Under the terms of the offtake deal, AVZ will supply 600 metric tonnes of concentrate to Kalon, with a minimum 55% tin content and expected grades between 60 and 70% tin.
Pricing formula will be linked to the London Metals Exchange tin price and provisional payment for each shipment made by telegraphic transfer against loading documentation at the delivery point.
Lithium agreement
Managing director Nigel Ferguson said the new deal comes just weeks after AVZ signed a second lithium offtake agreement which cumulatively provides binding commitments for more than 50% of saleable SC6 product from Manolo.
“Given the rising LME cash price of tin metal, this agreement is significant given that Kalon is a considerable participant in the tin industry,” he said.
“While it represents a relatively small but growing portion of revenue for Manono, it does confirm that another large international business is willing to secure future supply from the project.”
Kalon is a wholly-owned subsidiary of Hong Kong-based commodity trader Noble Group Holdings and specialises in the physical trading and supply chain management of industrial minerals and metals such as tin, tungsten, niobium, tantalum, alumina and aluminium and special ores such as chrome, manganese and iron ore.
The company has teams in Singapore, Hong Kong, China, South Africa, Rwanda and Brazil and works in close partnership with mining companies and communities, mineral processing facilities and industrial end-users.
