JOHANNESBURG (miningweekly.com) – Australia-based Avenira has signed another offtake agreement for production from the Baobab phosphate project, in Senegal.
Under the latest three-year agreement, Polyserve Import Export and Trade will buy 120 000 t/y of rock phosphate from the Baobab mine at market-based prices. The product will be delivered from the Port of Dakar.
Avenira has now signed commitments for between 360 000 t/y and 480 000 t/y of product from the mine, which MD Cliff Lawrenson said on Tuesday equated to most of the planned initial production for the first three years.
“Having secured offtake agreements allows us to plan production carefully and subsequent offtake agreements will be structured to match production. We are encouraged by this early demand and moving as quickly as possible to a full mining concession to increase production and improve efficiency of operations,” he added.
Avenira reported on August 4 that the first saleable product from the Baobab mine was imminent.
The project is being developed in an initial Stage 1 operation, producing 500 000 t/y of phosphate concentrate. Under close geological supervision, phosphate mineralisation has already been uncovered on the western side of the Stage 1 openpit.
Edited by: Creamer Media Reporter
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