Oscar J Jeke – Zim Now Reporter
Commodities giant Glencore could step in to purchase lithium concentrate from Premier African Minerals' troubled Zulu project in Zimbabwe—a deal that may help the miner clear a multimillion-dollar debt and get production back on track.
Premier, which is listed on the London Stock Exchange, revealed it has signed a non-binding letter of interest with Glencore International for the potential purchase of spodumene concentrate from its Zulu lithium mine, located about 80km from Bulawayo.
“Premier has entered into a non-binding letter of interest with Glencore International regarding the possible purchase of spodumene concentrate,” the company said in a statement released this week.
Premier has struggled to meet output targets after a series of technical challenges delayed the commissioning of its spodumene concentrator. As a result, the company failed to meet a 2022 offtake agreement with Canmax Technologies, under which it had committed to supply 50,000 metric tons of spodumene concentrate annually starting in May 2023.
Due to the missed deadlines, Premier now owes Canmax $35 million plus interest under a prepayment deal. Glencore’s involvement could provide crucial financial support.
“If the deal is concluded, Glencore would assist Premier in managing and repaying the debt owed to Canmax and other creditors,” Premier said.
Premier CEO George Roach expressed optimism about the potential agreement, stating: “Premier appreciates enormously the commitment and persistence from all to get us to this point. Our focus is now firmly set on the final completion and optimisation of the spodumene float section.”
Premier also confirmed it has agreed with Canmax to finalise a binding spodumene purchase agreement with Glencore within the next three months.
The Zulu Lithium Project, which spans 3.5 square kilometres across 14 mineral claims, is one of Zimbabwe’s largest undeveloped lithium-bearing pegmatite deposits.
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