Gulf signs manganese alloy offtake agreement

By Romel S. Gurky

ASX-listed Gulf Manganese Corporation Limited said on Monday that it has signed an offtake agreement with Renova Group for the sale of up to 60 percent of manganese alloy produced from the Kupang Smelting Hub in West Timor Regency, East Nusa Tenggara Province during the first three years of production.

Gulf said in a statement that under the terms of the agreement, it will supply up to 30,000 wet metric tons per annum of manganese alloy to Renova. The alloy will be sold by Renova?s marketing division, Afro Minerals Trading AG, at commercial terms.

Strategic offtake agreement further underpins development of Kupang Smelting Hub following recent finalization of terms for US$10 million cornerstone investment, the company said

Renova is a Russian-based international, private business group that consists of asset management companies and direct and portfolio investment funds owning and managing assets in the metals, mining, chemical, construction, transport, energy, telecommunication, high-tech machine building, public utilities and financial sectors in Russia, Switzerland, USA and South Africa.

Gulf?s Managing Director, Hamish Bohannan, commented: ?The board is pleased to have secured this offtake agreement with Renova Group, as it further validates our strategy for the near-term development of a world-class manganese alloy smelting hub facility in Indonesia.?

Gulf has recently executed a number of key milestones that have significantly de-risked the development of the Kupang facility, including the securing of a local cornerstone partner.

Editing by Reiner Simanjuntak