Kwale offtake partner issues force majeure notice
PERTH (miningweekly.com) – Mineral sands producer Base Resources has received a force majeure notice from an ilmenite buyer, seeking to suspend its obligations under an offtake agreement.
Under the terms of the agreement, the counter-party was due to purchase some 100 000 t of ilmenite by June this year, at an average price of $116/t, which was a significant premium to the current market price.
The 100 000 t/y agreement applied for a further three years from February 1.
However, Base said on Wednesday that the company had received a notice from the purchaser in response to an incident that occurred and caused significant delays in the commissioning of the counterparty’s slag furnace.
While providing a preliminary assessment of the extent of the damage caused by the incident, the notice advised that repairs, further damage assessment and rectification works would be required and that the duration of the delay was not known.
Base told shareholders that the company was assessing the potential impact of the notice, as well as its rights.
In the meantime, the company would explore all available options to sell the ilmenite to other customers.
Base started exports from its Kwale mineral sands project, in Kenya, in 2014 and the mine was being ramped up to produce 80 000 t/y of rutile, 360 000 t/y of ilmenite and 30 000 t/y of zircon. An optimisation push at Kwale was expected to increase the mine’s combined ilmenite, rutile and zircon output beyond 460 000 t/y.
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
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
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
