Australian miner Core Lithium Ltd said on Friday it had signed an initial supply agreement with Geneva-based trading firm Transamine, with the possibility of a binding deal later in the year.
The non-binding agreement, for an initial period of five years, is for the supply of 50,000 tonnes per annum of spodumene concentrate from Core’s Finniss lithium project near Darwin in the Northern Territory of Australia.
The miner is in negotiations with several parties for the remaining production from Finniss, which is expected to be ready for construction this year.
The agreement reinforces the long-term demand fundamentals of lithium beyond current covid-19 challenges, the company said.
Last month, Core Lithium got an approval from the Northern Territory government for its mine management plan to build Finniss.
(By Arundhati Dutta; Editing by Shounak Dasgupta)