Pilbara Minerals inks lithium supply deal with China's Great Wall
Lithium miner Pilbara Minerals on Tuesday said it had signed an additional deal with Chinese automaker Great Wall Motor
12th July 2019
Resources Rising Stars
Lithium miner Pilbara Minerals on Tuesday said it had signed an additional deal with Chinese automaker Great Wall Motor to supply spodumene concentrate, a key mineral for electric vehicles (reports Reuters).
Deliveries under the deal will begin in August, with 20,000 dry metric tonnes of concentrate to be shipped annually for six years.
The West-Perth based company's shares reversed course to rise as much as 13.7 per cent after the announcement, their sharpest gain in more than three months, before closing 5.1 per cent higher at 52¢.
In 2017, Great Wall Motor took a 3.5 per cent stake in Pilbara and signed an off-take deal that would provide it with 75,000 tonnes of spodumene concentrate each year for an initial five-year period.
Pilbara said it shipped 43,214 dry metric tonnes of concentrate in the June quarter, higher than previous quarter's 38,562 dry metric tonnes.
The miner expects sales in the three months ending September to be in the range of 35,000-48,000 dry metric tonnes of concentrate, affected by a 14-day planned shutdown at its Pilgangoora project.
However, sales are anticipated to be in the range of 65,000-80,000 dry metric tonnes of concentrate in the December quarter as production returns to full capacity.
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