Chromex Mining plc, the AIM listed dedicated chrome company, is pleased to announce it has signed a Memorandum of Understanding (‘MOU’) to supply a minimum of 10,000 tonnes per month of metallurgical grade sands to Metalmin Metals and Minerals Ltd, a leading international chrome trading company. Sales will commence once the Stellite processing plant has been commissioned, which is expected by the end of April 2009. The parties are currently concluding the definitive off-take agreement which will be on a take-or-pay basis with the contract price agreed quarterly. The chrome ore will be sourced from the 6.7 million tonne Stellite opencast resource, located on the Western Limb of the Bushveld Complex in South Africa.
Chromex CEO Russell Lamming said, “This agreement will positively impact our revenues going forward and marks a very important step towards consolidating our position as a long term chrome producer. Importantly, despite the recent downturn in the economic climate we are further encouraged by the recent improvements we have seen in the chrome market. We have a low cost base and a healthy cash position of £2 million, which we believe places Chromex in a strong position to weather the current economic storm and respond quickly when we see a more robust demand for beneficiated chrome products.”
Chromex Mining is a dedicated chrome mining company with two primary projects on the Bushveld complex, South Africa and approximately 41Mt resources under its control. The Company has commenced production at its Stellite project on the Western Limb of the Bushveld complex, and plans to commence production at its Mecklenburg project on the Eastern Limb as soon as possible.