Mining and development company Marula Mining says the Department of Mineral Resources and Energy (DMRE) has confirmed acceptance of the company's mining right application for the Blesberg lithium and tantalum mine in the Northern Cape.

Approval of the mining right, once granted by the DMRE, will allow the company to proceed with its plans to expand the current stockpile reprocessing operations at Blesberg to include the development of a large-scale and conventional openpit mining operation.

“We are all pleased to see the progress that is being made from a regulatory and permits and approvals perspective, which is essential as we move to establish the long-term and significantly larger mining and processing openpit operations at Blesberg," comments CEO Jason Brewer.

Meanwhile, Marula's wholly owned South African subsidiary South African Lithium and Tantalum Mining has also signed a long-term offtake agreement with UK-based base metals, minerals and energy commodities trading group Fujax UK for spodumene ore and concentrate from the Blesberg mine.

The agreement is based on the sale and purchase of 100% of Blesberg's production of spodumene ore and concentrate to Fujax through to December 31, 2026, with a minimum of 50 000 t at a grade of 6% lithium.

First sales will begin in May and will continue on a monthly basis.

Fujax also has the option to extend the offtake agreement by a further three years to December 31, 2029.

No maximum limits have been set on additional deliveries of spodumene ore and concentrate over this period from Blesberg to Fujax.

Also, 80% of monthly sales value is to be paid on delivery of material to Fujax's nominated warehouse in Cape Town and the balance to be paid on receipt of final certificates of quality and weight at the final discharge port.

“I am very pleased to have signed this long-term offtake agreement with UK-based Fujax for 100% of our planned spodumene ore and concentrate production from our Blesberg lithium and tantalum mine.

“This partnership allows us to move ahead at Blesberg with our longer term and larger scale plans, knowing we have the support of Fujax’s global team of metals and minerals trading logistics, storage, risk management and financing professionals,” says Brewer.