Kupang Resources ties up manganese supply

THE BOURSE WHISPERER: Kupang Resources (ASX: KPR), as part of the Kupang Joint Venture, has entered into a letter of intent with the Manganese Society of Kupang for supply of high-grade manganese ore to the company’s Kupang project (Kupang 55 per cent) in West Timor, Indonesia.

 

Location of Kupang project. Source: Company announcement

 

The Kupang JV has also acquired a process plant with capacity to produce up to 30,000 tonnes per month of manganese lump product suitable for direct feed into ferro- manganese or silico-manganese smelters per month.

The Manganese Society represents the interests of local manganese miners in Kupang and is currently comprised of 52 members.

Under terms of the agreement the Society will, on a best endeavours basis, undertake to procure the supply of a minimum of 30,000 tonnes of raw high-grade ore per month to the Kupang JV.

Kupang said it anticipates the Manganese Society will commence supplying raw grade ore in January 2013, which it will acquire for, what it consider to be, fair consideration.

Detailed terms and conditions are expected to be finalised in a formal agreement to be drawn up between the parties concerned.

“Kupang Resources is pleased to announce the achievement of these major milestones by the Joint Venture which strongly indicates the potential of the Kupang project to deliver production in the near term is now realisable,” Kupang Resources executive director Tony Sage said in the company’s announcement to the Australian Securities Exchange.

“We are now focussing on finalising an agreement to export the ore from Kupang.”