Premier African Minerals is considering an early cessation of current plant operations at its Zulu lithium and tantalum project, in Zimbabwe with the longer-term goal of production at design capacity not being unnecessarily delayed.
It said this would result in the suspension of shipment of concentrates for two months.
Premier said it is consulting with its offtake and prepayment partner in this regard, who have several options under these circumstances that include a requirement for an interim payment of $1.5 million in respect of each month when the product commitment is not met.
The company said the project should be in full production in January next year.
“Construction of civil works is a major undertaking, and timely completion is essential to ensure the company meets its medium- and longer-term goal of production at full design capacity,” said Premier.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
