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Marula confirms series of local contracts for Kenyan operations

30th May 2024

By: Darren Parker

Creamer Media Contributing Editor Online

     

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AQSE-listed Marula Mining has confirmed that the agreements which extend over all the company’s key operations activities at the Larisoro manganese mine, in Kenya, have been executed with several Kenya-based service providers.

These agreements include contracts for the drilling and blasting of material on site; the use of mobile mining equipment for the mining, loading and hauling of the ore and waste material; and for the transportation of the manganese ore from Larisoro to Nairobi, where it will be delivered into existing sales agreements and a proposed new long-term offtake agreement.

All these agreements have been signed with Kenyan-owned companies.

"These contracts collectively represent a significant advancement for the operation of Larisoro. The contracts, all with Kenyan-owned companies, demonstrate our commitment to local businesses and our preference for partnering with experienced and capable Kenyan companies.

“We anticipate that these collaborations will not only enhance our operational capabilities but also contribute significantly to our overall success and growth in Kenya's mining sector,” Marula CEO Jason Brewer said.

These contracts are in addition to the processing plant refurbishment and upgrade agreement that is in place with a Kenya-based specialist mineral processing company that has been on site at Larisoro throughout May to complete this work.

The drilling and blasting contract was awarded to an experienced Kenyan-owned contracting group, while the schedule of rates contract will extend over the drilling and blasting of both manganese ore and waste and overburden material to achieve the company's monthly targeted manganese ore production rates of between 5 000 t and 10 000 t of saleable high-grade manganese ore by September.

Contract work is ongoing, with the first production blast at the central pit having already been successfully undertaken.

A contract for the supply and operation of mobile mining equipment has also been signed by Marula with a Kenya-based supplier.

The mobile mining equipment and the experienced personnel to operate the equipment are already on site and are working under the management and oversight of Marula and its technical team.

Mining, loading and hauling of manganese ore and waste and overburden material has already started and is ongoing under a monthly fee arrangement.

A further transportation contract has been finalised and signed for the provision of transportation and logistics of the manganese ore from Larisoro to Nairobi.

This transportation contract, which is under a standard schedule of rates with a Kenyan-owned company, is for an initial three-year period and will continue yearly thereafter.

Upon delivery of the material to Nairobi, the manganese ore will be sold under existing sales agreements and a planned new long-term offtake agreement.

Management of the logistics and transportation of the manganese ore from Nairobi to Mombasa and into the international commodity export markets will be managed under Marula’s new offtake agreement.

"Our drilling and blasting specialists, logistics partners, and mobile mining equipment providers bring a wealth of expertise that we believe will assist in establishing the Larisoro manganese mine as a long-term and efficient mining operation,” Brewer said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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