Marula CEO Jason Brewer
AQSE-listed Marula Mining has signed a sales and offtake agreement with UK-based commodities trading group Fujax for manganese ore production from the Larisoro manganese mine in Samburu, Kenya.
The agreement is for an initial 2 000 t of manganese ore, which is to be delivered by no later than July 1.
Thereafter, Marula is expected to achieve further minimum monthly deliveries of 5 000 t and nominal monthly deliveries of 20 000 t for the next 12 months through to June 2025.
The agreement includes an option to extend the arrangement by mutual agreement.
"Entering into this initial sales and offtake agreement with Fujax so soon after getting involved with our investment in the Larisoro manganese mine supports our belief in the potential of this manganese mining operation. This agreement . . . is in addition to the Blesberg lithium offtake agreement with Fujax,” Marula CEO Jason Brewer said on May 31.
Deliveries of the initial tonnage of manganese ore to Fujax will begin immediately from stockpiled material in Nairobi and processed material at the Larisoro mine that will be transported to Nairobi.
The minimum manganese ore grade acceptable under the terms of the agreement is 30% with a maximum iron-ore grade of 4%. This is considered by Marula to be readily achievable based on current sampling and assay results and historical sales from the Larisoro mine.
Moreover, the company said the monthly deliveries and other specifications required are in line with its current production plans, operating procedures and budget for the Larisoro mine.
The transportation of manganese ores from Larisoro to Nairobi will start under a transportation and logistics agreement.
"It has been a busy period for our team on site at the Larisoro manganese mine. With this agreement, I am confident that we now have partners who can bolster our position in Africa and the global manganese market, ensuring our role as a long-term, sustainable producer of high-value battery metal commodities," Brewer said.