<article><p class="lead">Perth-based lithium developer Prospect Resources has reached an offtake agreement to supply 100,000 t/yr of ultra-low iron petalite over seven years to Belgium-based industrial minerals and material solutions company Sibelco.</p><p>The pricing formula is linked to end customer sales contracts with minimum pricing provisions, Prospect said, without giving more details.</p><p>The petalite will come from Prospect's 87pc-owned Arcadia lithium project in Zimbabwe, which a definitive feasibility study has shown can produce 173,000 t/yr of spodumene (lithium concentrate), 174,000 lb/yr of tantalite concentrate and 122,000 t/yr of ultra-low iron and low iron petalite over 15½ years.</p><p>"Sibelco is the largest distributor of ultra-low iron petalite in Europe and possibly the world and we believe this is the largest ultra-low iron petalite offtake agreement ever signed," Prospect's managing director Sam Hosack said. Prospect expects to be the world's largest producer of ultra-low iron petalite once in production.</p><p>Sibelco will use the supplies to serve its customers in the glass and ceramics sectors. Ultra-low iron petalite improves strength, density, acid and heat resistance and reduces water absorption and linear shrinkage.</p><p>The Sibelco agreement will account for all of the Arcadia mine's ultra-low iron petalite output for the first seven years after reaching commercial production.</p><p>Prospect can terminate the contract if Sibelco does not buy at least 10,000t in each of two successive quarters for any reason other than global petalite market prices falling below agreed price levels. Sibelco can cancel the contract if Prospect does not meet agreed production levels for two successive quarters.</p><p class="bylines">By Angus Macmillan</p></article>
