China’s Canmax Technologies and Premier African Minerals Reach Agreement on Delayed Lithium Concentrate Supply Contract
Canmax Technologies and Premier African Minerals, two key players in the lithium industry, have successfully resolved their dispute concerning a lithium concentrate supply contract.
The disagreement arose due to delays caused by a malfunctioning processing plant. In a joint announcement on Tuesday August 15th, the companies confirmed the resolution of the issue.
The contractual arrangement pertains to the delivery of 48,000 metric tons of spodumene concentrate from Premier’s Zulu lithium mine in Zimbabwe to Canmax.
The exchange involves a significant financial commitment of $35 million from Canmax, which was directed towards the construction of the Zulu processing plant.
Canmax initiated steps to terminate the agreement in June when Premier failed to fulfill its commitment of delivering the lithium concentrate as originally agreed upon in May.
Premier invoked force majeure, attributing the failure to issues at its recently established processing facility.
Issuing separate statements, both companies confirmed their mutual decision to reinstate the offtake agreement.
Premier expressed, “The revised agreement effectively reinstates the operational collaboration between Premier and Canmax, leading to the withdrawal of force majeure and default notices by both parties.”
Canmax also provided a separate statement, verifying the renewed agreement: “The amended terms of the agreement signify the reestablishment of cooperation between Canmax and Premier.”
Canmax not only has a significant stake in Premier, with ownership of 13.38%, but is also one of the most substantial Chinese investors in Zimbabwean lithium assets.
This investment trend is part of a broader move by Chinese firms to invest over $1 billion into Zimbabwe’s lithium resources within the last couple of years.
The goal of these investments is to secure future supplies of the crucial battery mineral, given its growing importance in the energy storage sector.
Numerous other Chinese enterprises, such as Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, and Yahua Group, also have mining operations related to lithium in Zimbabwe.
This collective effort signifies China’s strategic approach to securing a consistent and reliable supply of lithium resources in anticipation of the rising demand for battery minerals.
