SINGAPORE - Singapore-listed Australian miner Alliance Mineral Assets Limited (AMAL) and its joint venture partner Tawana Resources have entered into a non-binding term sheet to sell at least 600,000 pounds (272,155 kilogrammes) of tantalum concentrate. A binding agreement is to be negotiated within two months.
According to both companies on Thursday (Jan 25), the buyer is a tantalum industry specialist, and has agreed to purchase the tantalum concentrate from the Bald Hill Lithium and Tantalum Mine in the Eastern Goldfields of Western Australia. The Bald Hill project is owned 50:50 by Tawana and AMAL.
The buyer has agreed to purchase a minimum of 600,000 pounds of tantalum concentrate from April 2018 to December 2020, or all of the standard grade tantalum concentrate produced at Bald Hill within this period if the delivery is less than 600,000 pounds, the companies said.
At the option of the buyer and subject to availability, the buyer may also purchase other materials such as low grade concentrates and off spec materials.
Under the agreement, there are no penalties to Tawana and AMAL for late deliveries.
Said AMAL's chief executive officer Tjandra Pramoko: "With the Bald Hill Mine due to commence tantalum production in the first half of 2018, we are pleased to have reached a tantalum supply agreement with a true market leader in the field. At the same time, we are also continuing discussions with other third parties for sale of excess tantalum concentrate."