London-listed Premier African Minerals is considering selling its Zulu lithium and tantalum project in Insiza due to operational and funding difficulties. CEO George Roach informed shareholders that he cannot predict when profitable production at Zulu might begin, citing low recoveries and the quality of spodumene concentrate produced so far.
The project has faced delays, particularly in commissioning the float plant section, which only began operations in March due to issues with the design of the comminution circuit. While the mica recovery section is fully operational, the spodumene section has not yet worked properly, as the Original Equipment Manufacturer (OEM) provided different operational parameters compared to laboratory tests.
Premier is exploring various options for moving Zulu forward, including a complete or partial sale, a joint venture, or installing an additional spodumene float plant funded through self-financing. The board believes that resuming production should be considered if these strategic alternatives do not pan out.
ALSO READ: CABS Invests $107 Million in Economic Growth Through Strategic Lending
Discussions are ongoing with an unnamed Chinese engineering firm experienced in building flotation plants, with one already operational in Zimbabwe that processes ore similar to that at Zulu. The cost for an additional flotation plant, including installation and integration, is estimated at $400,000, taking about three months to operationalize.
Roach mentioned that Zulu has accumulated significant debt, and while some could be restructured, restarting operations will require further funding. The company also has substantial creditors to address, prompting plans to use existing authorities to manage immediate financial needs and explore additional funding through a forthcoming general meeting.
