Garnet offtake adds about A$20m/y to Mineral Commodities treasury
PERTH (miningweekly.com) – ASX-listed Mineral Commodities has signed a three-year offtake agreement with industrial garnet abrasives producer GMA Garnet Group for product from its Tormin mineral sands project, in South Africa.
Under the three-year deal, Mineral Commodities would provide a minimum of 150 000 t/y and a maximum of 240 000 t/y of garnet concentrate to GMA. The agreement provided Mineral Commodities the potential to add revenues of up to $20-million a year, depending on the exchange rate, as well as price assumptions and the garnet characteristics.
The offtake agreement could be extended by a further two years.
“This is another important agreement for Tormin, in addition to our zircon/rutile agreement with Wogen, we are very satisfied with the agreement reached with GMA,” said Mineral Commodities executive chairperson Mark Caruso.
He noted that the GMA agreement provided the company with certainty for the offtake of the garnet production over the mine life at Tormin.
“The original metrics of this project did not take into account the upside resulting from garnet sales. One of the most significant aspects about Tormin is the extremely high grade and valuable assemblage of minerals which are processed through a simple, conventional and low-cost plant.”
The A$16-million project was expected to have a mine-life of five years, and would produce some 48 000 t/y of zircon/rutile, 135 000 t/y of ilmenite and 240 000 t/y of garnet concentrate.
Mineral Commodities told shareholders on Tuesday that the company had maintained the right to sell up to 60 000 t/y of garnet concentrate to third parties, at its discretion.
Mineral sand production at Tormin started in December last year.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
VISIT SHOWROOM
FLANDERS Southern Africa provides integrated solutions for mining and industrial operations, covering field services, automation, electrification,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
