Kazera strikes tantalum sale deal
By Hilary Mare
KAZERA Global has entered into an offtake agreement for the sale of all tantalum produced from its mine in Tantalite Valley in Namibia, following the conclusion of its plans to start tantalum production at the mine.
After extensive due diligence, Jiujiang Jinxin Nonferrous Metals, based in Jiangxi province China, was selected as the company’s preferred buyer.
Jinxin has entered into a three-year initial contract, through to December 31 2024, to buy all tantalum concentrate produced by Kazera at a fixed price that is competitive in terms of those paid globally by end-users of tantalum.
Jinxin specialises in various product lines related to tantalum, niobium and its derived products, which include high-purity tantalum pentoxide, high-purity niobium pentoxide, common grade tantalum pentoxide, common grade niobium pentoxide and Ksalt.
Jinxin’s products are sold throughout China, as well as in the US, Japan, South Korea and Europe.
A test sample has already been successfully assayed in Namibia and has now been airfreighted to Jinxin for factory testing.
Payment for this sample is expected by the company during this month.
Jinxin has also expressed an interest in becoming involved in the company’s development of its lithium deposit.
“We chose to enter into an agreement with Jinxin because they clearly understand the complexities of plant operational restarts and can use the high grade of tantalite. I have also had extensive positive experience of working with them in the past.
“Sourcing product from Namibia has major advantages for buyers as the country is far removed from conflict and has excellent infrastructure. We were approached by dealers in tantalum who would have accepted much lower standards, but who we felt have less growth, flexibility and commitment than displayed by Jinxin,” says Kazera joint CEO Larry Johnson.
Kazera Global currently holds a 100 percent stake in Aftan, which in turn holds two wholly owned subsidiaries, Namibia Tantalite Investments (NTI) (holds operating assets and plant) and Tameka Shelf Company (holds title and licences to Tantalite Valley).
Kazera Global has been invested in NTI since 2015 and is focused on production of tantalum and exploration of lithium. The company manages and operates the Tantalite Valley Mine (TVM) in southern Namibia, near Warmbad. The mine has one of the highest grades of tantalum ore in the industry reporting grades exceeding 25 percent in tantalite, four percent in lithium with a flotation plant extension increasing potential up to six percent and 12 percent in feldspar to supply high quality ceramics and glass smelters.
In 2017, the company signed a multi-year supply agreement with the leading global North American tantalum consumer and end user of tantalum ore.
In December 2017, drilling commenced on two exploration campaigns in the Homestead and Lepidolite locations to evaluate further resource potential around the NTI mine.
In addition to significant tantalum potential, the NTI mine has shown potential for lithium production.
With this potential for lithium production the mine could see itself in a position to be producing two highly in demand finite resource as the focus on development of battery metals continues.