US$75 million invested at Zulu Lithium

18 Jun, 2024 - 17:06 0 Views
US$75 million invested at Zulu Lithium Zulu Lithium Mine

Rutendo Nyeve, Sunday News Reporter

PREMIER African Minerals has revealed that the Zulu lithium plant which has been completed cost the company the better part of US$75 million with the conditioning tank set to be the last plant modification.

In an update on Tuesday, Premier African Minerals Chief Executive Officer Mr George Roach revealed the cost of investment saying the company’s board remains confident with the prospects of the mine.

“Premier sincerely hope the conditioning tank will be the last plant modification and on that note, the Board remains confident regarding the prospects for Zulu.

“We note that at this time the development of Zulu, a complete mine, has cost the company the better part of US$75 million, and neither this nor the deemed valuation of Zulu agreed with our take-off partner is reflected in our current market capitalisation,” he said.

The company also advised that the sale of concentrates on hand is now expected to proceed on an ex-mine gate basis.

“The lower grade concentrates will now be sold (conditional on independent laboratory analysis underway in South Africa) on an ex-mine gate basis, free on truck from Zulu and payment will be made immediately once the conditions have been met.

“Zulu will not be expected to deliver production to port, nor will Zulu be required to outlay transport and shipping costs. This will provide a small cash flow benefit,” noted the company.

The company with regards to the El Nino-induced drought, they have taken steps to carefully assess water usage in the plant.

It said the water balance as per the original plant supplier was significantly understated and, as the company, they had also already anticipated that in the first year of production, Zulu’s storage dam might not reach capacity during the wet season.

“Cognisant of this the company took several steps to mitigate any potential water issues including arranging access in December 2022 from other dams in close proximity to the mine and increasing the return water recovery from Zulu’s tailings dam.

“The Company also reconfigured in plant process water reticulation including the installation of the thickener and constructed an additional large capacity reservoir at the plant,” noted the company.

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