Marula Mining to Move Blesberg Mine to Contract Basis in 2025
Marula Mining has announced that mining operations at its Blesberg Lithium and Tantalum Mine in South Africa will transition to a contract mining basis starting February 2025. This decision follows a successful competitive tender process that concluded over the past three months, with the selected mining contractor expected to mobilize in early 2025.
The shift to contract mining aims to enhance both the scale and efficiency of operations at Blesberg. The contractor will handle larger-scale open-pit mining activities and reprocess existing stockpiles at the site. Subject to finalizing the mining contract by the end of December 2024, operations are anticipated to begin in February 2025.
In parallel, Marula Mining and its South African subsidiaries are finalizing a restructuring agreement with EQSTRA Corporation Limited, a South African finance company. This agreement will see Marula lease the majority of mine support vehicles and processing equipment previously leased from Q Global Commodities. The leasing arrangement is valued at approximately £1.33 million under a standard four-year term.
The move to contract mining and restructuring of equipment leases signals Marula's commitment to expanding its mining and processing capabilities at Blesberg and the adjacent Northern Cape Lithium and Tantalum Project. The expansion will focus on producing high-value lithium products and other critical minerals such as tantalum, niobium, tungsten, feldspar, and mica.
Marula CEO Jason Brewer highlighted the importance of these developments, noting that the increased scale of operations and the leasing of additional equipment will strengthen the company's production capabilities. Brewer added that the lithium market dynamics have driven Marula to adapt its strategy, positioning the company to produce higher-value lithium products by 2025.
The Blesberg mine expansion will also include the mining of pegmatites that contain lithium and tantalum, and the contractor will be responsible for handling the mining waste stockpiles where high-grade spodumene has been identified. Marula is also in the process of applying for a mining right for the expansion, with supporting studies already submitted to South Africa's Department of Mineral Resources and Energy.
Marula's move to restructure its equipment leasing agreements will result in the company taking over the lease for seven mine support vehicles and two pieces of mineral processing equipment. With the mining contractor set to bring its own equipment to the site, certain older equipment currently on-site will no longer be needed.
Brewer expressed optimism about the company's future, noting that these steps reflect Marula's commitment to sustainable growth and shareholder value. "Our focus remains on delivering sustainable growth, and with these developments at Blesberg, I am extremely positive about our outlook for 2025," Brewer said.
