American Resources inks agreement to purchase lithium spodumene ores in South Africa for further refining
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(Kitco News) - American Resources (NASDAQ: AREC) today announced that it has entered into the first stage of a South African partnership through the signing of an offtake agreement to purchase 6%+ lithium spodumene ores from regional operating mining concessions.
According to a news release, the initial phase of agreement will procure 5,000 metric tons of lithium spodumene ore per month, and later phase expected to increase to over 20,000 metric tons per month from two lithium mining concessions.
The company said that spodumene ores will be refined to greater than 99.9% pure, battery-grade lithium carbonate or hydroxide using its wholly-owned ReElement Technologies' patented refining and purification processes.
Based on a 6% lithium spodumene, the company expects its high-purity lithium carbonate production from ReElement Technologies to be approximately 32,000 to 34,000 metric tons per annum.
Additionally, American Resources and its subsidiaries are collaborating with its South African partners on the site selection for a future regional refining facility that will be located at or close to a regional port.
“This facility will significantly reduce the costs associated with transporting lithium ores and will also add value to the local African communities by bringing new, cutting-edge technologies and facilities to the region,” the company said.
The facility is anticipated to process lithium spodumene ores in a manner that yields ultra-pure, battery-grade lithium carbonate or hydroxide, which can then be used as a commercial grade feedstock for either domestic battery manufacturers in the United States or local battery production in the area.
American Resources is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled.
Through its wholly owned subsidiary, ReElement Technologies, American Resources said it is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts.
American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
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