AMN - ZAMBIA: BMR and ACI in off-take agreement

BMR has entered into the anticipated off-take agreement with African Compass International (ACI), a private South African group engaged in mining, energy and agri-business. The agreement provides for the off-take by ACI over a minimum five-year period, starting within six months of commissioning of the Kabwe plant, of a minimum of 500 tonnes/month of agricultural grade zinc sulphate heptahydrate (ZSH), 300 tonnes/month of lead sponge and 300 tonnes/month of LME grade 'A' electrolytic zinc cathodes, each to a specified quality.

All products will be supplied on an FOB Kabwe plant gate basis at a price linked to the related LME spot price. It is estimated that sales of the minimum quantities of these three products from the plant, as it is proposed to be configured, would generate gross revenue of at least $750,000/month at current prices. Upon the minimum quantity having been delivered in a given month, BMR may, subject to the approval of ACI not to be unreasonably withheld, sell any of such products to third parties in that month.

BMR has now finished the civil works to prepare the floor space in the old mine concentrator building, which is now ready for concreting. Orders for all of the leach/precipitation/lead leach mixing tanks and agitators have been placed. In addition, the planned extension and modifications to the test laboratory facility at Kabwe have been completed.

The Kashitu prospect

Ground conditions in the Kashitu section of the Large Scale Mining Licence have now improved sufficiently to allow the start of the planned pitting and trenching program. The program is designed to investigate historical anomalies and to carry out additional exploration to extend knowledge of this section of the Large Scale Mining Licence.

Baseline studies are under way following ZEMA’s approval to build the plant.

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News courtesy of International Mining