Thanks @atom99 I know we dealing now with JBJLIL and I was...

First 163 Last

Share
Profile

Follow
kropka

1,722 Posts.

408

16/08/19

16:38

Post #: 40019703
Share

Originally posted by atom99 ↑

just for information we are no more dealing directly with Burwill..please read attached below:
Restructure of OfftakeAs announced on 15 January 2019 Alliance and its subsidiary Lithco No.2 Pty Ltd (Lithco) have each agreed with Burwill Lithium Company Limited (BLCL) and its parent company Burwill Holdings Limited (Burwill Holdings) that BLCL will transfer its rights and obligations as the buyer under their respective long-term offtake agreements (Lithium Offtake Agreements) to Jiangxi Bao Jiang Lithium Industrial Limited (JBJLIL). JBJLIL is owned 50:50 by BLCL and Jiangte Special Electric Motor Co., Ltd (Jiangte).The Lithium Offtake Agreements were also amended effective 14 January 2019 (Amended Lithium Offtake Agreements), Key changes were:
• Transferring the Lithium Offtake Agreements to JBJLIL indicates strong support for the Bald Hill Mine from Jiangte which is increasing its lithium concentrate conversion capacity as it moves towards becoming a significant player in the downstream processing market in China
• Amended Lithium Offtake Agreements provide for a market-linked pricing mechanism, with lower and upper limits of US$680/tonne and US$1080/tonne respectively (FOB 6% Li2O), for the remaining term ending on 31 December 2022.
• Remaining 18,000dmt from 2018 production will be purchased by JBJLIL at the 2018 fixed price of US$880 per dmt FOB at 6% Li2O. ETA for shipping is end of January 2019
.• Exclusivity and pre-emptive right have been removed from the Lithium Offtake Agreements, allowing Alliance to diversify its customer base.
• Maximum commitment for concentrate supply under the Amended Lithium Offtake Agreements is 100,000 tonnes in 2019 (minimum 80,000 tonnes) and 140,000 tonnes for each year between 2020 and 2022 (minimum 100,000 tonnes).
• Alliance is seeking new offtake partners to purchase remaining Stage 1 lithium and Stage 2 lithium concentrate production. Offtake interest has been strong as there is limited uncommitted, high quality, spodumene available from producers for 2019.

Expand

Thanks @atom99

I know we dealing now with JBJLIL and I was quoting Burwill as they were the like our first client at the beginning of BH.

No questions about good terms received from them but IMO we should have something protecting us from delays in shipping which started to appear in 2018.

A40 Price at posting: 8.2¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

Reply