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Marula Mining PLC on Wednesday said it inked two additional manganese ore supply agreements intended on maximising production at its Kenyan processing plant.
The London-based mining company with operations in Africa signed an agreement to receive 10,000 tonnes per month of manganese ore for its Kilifi manganese processing plant in the Tezo Area of Kenya.
As outlined in the first agreement, Marula will initially receive 30,000 tonnes of ore with a minimum grade of 24% over the first six months. Thereafter, the company can negotiate further deliveries with a minimum quantity of 30,000 tonnes.
The second agreement will supply Marula with monthly ore deliveries of 5,000 tonnes at the same grade over a year, with an option to extend for an additional two years.
These latest arrangements follow an agreement with Kitmin Holdings Ltd earlier in August for the monthly supply of 10,000 tonnes of ore.
First deliveries are expected by September 30.
Chief Executive Officer Jason Brewer said: ‘These agreements are a significant step forward, enabling additional ore feed per month of manganese ore to our Kilifi manganese processing plant. This, combined with our existing agreement with Kitmin, positions us to potentially exceed our initial production targets and explore the possibility of operating the Kilifi Plant on a double-shift basis.’
Marula Mining shares were flat at 7.375 pence each on the Aquis Exchange on Wednesday afternoon.
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