- Leo Lithium (LLL) signs an agreement with Terminal Vraquier Abidjan (SEA-Invest) to secure port storage for spodumene concentrate from its Goulamina project
- The agreement secures warehouses covering 9000 square metres at the Abidjan water port in the Ivory Coast for a 10-year period
- As part of the agreement, a minimum port throughput of 250,000 tonnes per annum is required with no upper limit on quantities to be exported
- In its next steps, the parties will finalise and execute a full operations agreement over the period through to H1 2023
- Shares in Leo are down 4.07 per cent and trading at 59 cents at 10:59 am AEDT
Leo Lithium (LLL) has executed an agreement with Terminal Vraquier Abidjan (SEA-Invest) for port services at the Abidjan port on the Ivory Coast.
The agreement secures storage for the Goulamina lithium project spodumene concentrate product at the West African deep water port for 10 years.
Under the agreement, the lithium develop has secured warehouses with a footprint of 9000 square metres which it will use for product storage directly on the wharf of the port.
The company’s initial assessments indicated this equates to approximately 60,000 tonnes of product storage.
However, the agreement requires at least 250,000 tonnes throughput per annum with no upper limit on quantities to be exported.
Managing Director Simon Hay confirmed the first plank of Leo’s logistics strategy is now in place.
“This is a fantastic outcome as it will minimise material movements and optimise logistics costs,” Mr Hay said.
“We are very pleased to commence our relationship with SEA-Invest, who provide full port
services and be an essential link in our supply chain.”
There is no capex required from Leo as SEA-Invest will be responsible for making investments to upgrade the warehouses and make it suitable for product storage.
According to the company, the facilities are well established and minor upgrades will be completed to enable product receipt and export from July 1, 2023.
This will allow for a potential acceleration of the Goulamina project timeline, Leo said.
In its next steps, the parties will finalise and execute a full operations agreement over the period through to H1 2023.
An option for extension will be included in the operations agreement in line with SEA-Invest’s port concession with the Abidjan Port Authority.
Shares in Leo were down 4.07 per cent and were trading at 59 cents at 10:59 am AEDT.