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Marula Mining to shift Blesberg mine to contract model

Published 12/05/2024, 03:12 PM

LONDON - Marula Mining PLC (AQSE: MARU), a company focusing on African mining and development, has announced a shift in operations at its Blesberg Lithium and Tantalum Mine in South Africa to a contract mining basis set for February 2025. This transition follows a three-month competitive tender process, with the contractor expected to commence activities in the first quarter of 2025, subject to the finalization of the contract by the end of December 2024.

The company is also restructuring its equipment leasing agreements. Marula's South African subsidiaries are finalizing new leasing arrangements with EQSTRA Corporation Limited for mine support vehicles and processing equipment, previously supplied under agreements with Q Global Commodities. This restructuring, valued at approximately £1.33 million, is anticipated to be completed by the end of December 2024.

The move to contract mining and restructuring of leasing agreements is part of Marula's strategy to expand operations at Blesberg and the adjoining Northern Cape Lithium and Tantalum Project in 2025. The company aims to produce high-value intermediary lithium products and other critical battery minerals like tantalum, niobium, and tungsten, as well as by-products such as feldspar and mica.

The mining contractor will be responsible for the conventional open pit mining of lithium and tantalum bearing pegmatites at Blesberg and the mining of residual mining waste stockpiles, where high-grade spodumene ores have been identified. The mine plan submitted to South Africa's Department of Mineral Resources and Energy earlier in the year forms the basis for these operations.

CEO of Marula Mining, Jason Brewer, expressed optimism about the company's outlook for 2025, citing the change in the lithium market in 2024 and the company's swift adaptation in negotiations with a Chinese battery manufacturer and its lithium offtake partner.

The announcement is based on a press release statement and contains forward-looking statements regarding the company's future operations and growth. The Directors of Marula are responsible for the content of the announcement, which includes inside information for the purposes of UK Market Abuse Regulation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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