Altura and Pilbara sign sales deals

Altura Mining and Pilbara Minerals have struck offtake agreements with Chinese firms for lithium concentrate from their respective Pilgangoora projects.

Altura announced it entered into a five-year binding offtake agreement with Shandong Ruifu for 35,000 tonnes of product per annum,

The offtake agreement, which will commence this month, replaces its previous deal with its former largest shareholder Shaanxi J&R Optimum Energy.

Last month, Altura received a new largest shareholder after Ningbo Shanshan acquired Shaanxi’s stake of about 11.8 per cent.

Today, Pilbara also announced it had signed an agreement with Great Wall Motor Company, for 20,000 dry metric tonnes per annum.

The deal will last for six-years and commence next month, according to Pilbara.

It said Great Wall has been pushing to expand its presence in the lithium-ion supply chain.

Pilbara shipped 43,214 dry metric tonnes for the June quarter, which was at the higher end of its previously stated guidance last month.

Its guidance was lowered last month, after it said its sales would limited due to construction delays from its offtake partners.

It expects production and sales to return to full capacity for the December 2019 quarter.

Shares in Altura closed flat at 12 cents.

Shares in Pilbara were up 5.1 per cent to close at 52 cents each.