Tantalex secures Glencore's backing for Congo lithium project
08/09/2023 22:22
NAIROBI/ TORONTO, Sept 8 (Reuters) - Tantalex Lithium
TTX.CD , a Canadian junior miner that is aiming to produce
lithium from the Democratic Republic of Congo (DRC), said on
Friday its tailings project has secured the backing of Glencore
GLEN.L .
The Swiss miner and trader will pay a staggered $5 million
to Tantalex as part of the marketing off-take agreement and has
agreed to finance a third of the capital requirements for the
DRC project, if it meets its conditions, Tantalex said in a
statement.
Glencore has agreed a term-sheet to market the spodumene
concentrate - or high-purity lithium ore - that will be produced
at the Tantalex's Manono tailings project in the Congo.
Tailings dams, which can tower dozens of meters high and
stretch for several kilometres, are a common waste-disposal
method for miners.
Some of the dumps at Manono tailings, deposited several
years ago, reach maximum heights of 70 metres (230 ft), Tantalex
said on its website.
The deal is subject to Glencore conducting due diligence and
its backing of Manono helps to de-risk the project, Tantalex CEO
Eric Allard said.
Glencore, which mines copper and cobalt in the DRC started
to trade lithium around a year ago, even though it has said it
has no interest in owning lithium assets outright.
Allard said Glencore's expertise in the country "will be
crucial for developing further our activities in the DRC."
Globally, mining companies and manufacturers are scrambling
to secure supplies for lithium, which is key to boosting growth
in battery electric vehicles as the world seeks faster
alternatives to clean energy.
"The capital expenditure financing commitment is a
significant milestone in the de-risking of the project and
achieving our goal to become the first lithium producer in the
DRC," Allard said.
(Reporting by Felix Njini and Divya Rajagopal; Additional
reporting by Clara Denina
Editing by Marguerita Choy)
((Felix.Njini@thomsonreuters.com;))