Altura Mining has signed an offtake agreement with Chinese lithium materials producer Shandong Ruifu for product from its lithium mine at Pilgangoora in Western Australia.
The agreement involves providing 35,000 tonnes per annum of six per cent grade spodumene concentrate until June 2024.
First shipment under the deal of approximately 8000 tonnes is scheduled for later this month with pricing incorporating reference pricing weighted for lithium carbonate and lithium hydroxide.
Altura has also had its current offtake arrangements with Shaanxi J&R Optimum Energy (JRO) terminated for the remaining 50,000 tonnes per annum allocated.
Subsequently, JRO will no longer receive spodumene concentrate produced by Altura.
The new offtake agreement with Shandong has allowed Altura to broaden and strengthen its customer base, according to managing director James Brown.
“Shandong Ruifu previously received product from Altura in 2019 and to move forward from that initial cargo into a long-term contract is a very positive step forward for Altura,” he said.
“The cancelling of the JRO offtake is extremely positive given its well-publicised and long-running restructuring activities.”
JRO recently sold the last of its Altura shareholding to lithium battery materials supplier Ningbo Shanshan.
Brown said Altura was continuing to progress its strategic relationship with its new major shareholder, while ramping up the performance of the Altura operation.
“The plant performance continues to improve and the quality of product coming out of the Altura operation continues to attract significant customer interest which is underpinning both short and long-term demand,” he said.
The Altura lithium project commenced production in 2018 and has a production capacity of 220,000 tonnes per annum of spodumene concentrate.
The company has completed a feasibility study on a potential stage two expansion, with a final investment decision due following the review of stage one operations, ramp-up to production, off-take agreements and securing funding for expansion.