(Ecofin Agency) - Following a definitive feasibility study (DFS) of its Achmmach tin deposit (Morocco), published July 16, Kasbah Resources plans to launch the project’s construction work in 2019 and start production the following year.

To this end, the company engaged negotiations with partners to secure funding and offtake agreements, as well as identify a suitable contractor capable of conducting underground mining. According to the Positive DFS, initial capital cost now stands at $96.4 million with a 4-year payback period. Still, the mine is now expected to produce about 4,500 tons per annum including 60% of tin concentrate with overall recovery rate of 77%, over an initial mine life of 10 years.

“There is a growing need for tin in many industries and in the technology sector in particular and there are limited opportunities in the world for new global scale tin production from safe and non-conflict locations,” CEO Russell Clark (photo), said.

“Along with strong local support, the Achmmach project has the main permits required for operation and now has a DFS which supports its development, positioning the project to satisfy increasing global tin demand,” he added.

Let’s note that the project’s partners include Kasbah Resources (75%), Toyota Tsusho (5%) and Nittetsu Mining (5%).

Louis-Nino Kansoun