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AVZ Minerals (ASX:AVZ) - Managing Director, Nigel Ferguson
Managing Director, Nigel Ferguson
Source: Business News
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  • AVZ Minerals (AVZ) has signed a long-term offtake agreement with Yibin Tianyi for the supply of spodumene concentrate (SC6) from the Manono Project in the Democratic Republic of Congo
  • Based in China, Yibin Tianyi is a global battery materials producer
  • Under the initial three-year agreement, Yibin will purchase up to 200,000 metric tonnes of SC6 per annum from AVZ, with the option to extend for an additional two years
  • AVZ is continuing to explore strategic opportunities for its offtakes in traditional and emerging lithium markets across Europe, the U.S. and India
  • AVZ Minerals shares are up 5 per cent, trading at 21 cents each

AVZ Minerals (AVZ) has signed a long-term offtake partner agreement with Yibin Tianyi for the supply of spodumene concentrate (SC6) from the Manono Lithium and Tin Project in the Democratic Republic of Congo.

Based in China, Yibin Tianyi is a global battery materials producer.

The company is continuing to expand its lithium hydroxide production capacity as a key participant in the supply chain of Contemporary Amperex Technology, the world’s largest lithium-ion battery maker.

Yibin, under the initial three-year agreement, has agreed to purchase up to 200,000 metric tonnes of SC6 per annum from AVZ following the commencement of production, with the option to extend for an additional two years.

AVZ Managing Director Nigel Ferguson said the explorer is pleased to secure the deal.

“This agreement takes our SC6 binding off-take commitments to more than 80 per cent of the project’s annual SC6 production, which is a massive endorsement for the Manono Project and one that satisfies an important condition precedent for our prospective project financiers,” Nigel commented.

“At present, we are seeing buoyant market conditions with reported SC6 prices in China increasing around 30 per cent in the first quarter of the year while, during the same time, the London Metal Exchange cash tin price has surged around 30 per cent, boding well for the Manono Project’s optimised definitive feasibility study which is due for completion next quarter,” the director added.

AVZ is continuing to explore strategic opportunities for its offtakes in traditional and emerging lithium markets across Europe, the U.S. and India.

AVZ Minerals shares are up 5 per cent, trading at 21 cents each at 9:00 am AEDT.

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