Canada-based Kombat Copper has signed a provisional agreement for scaled production of lead mineralisation from its Kombat mine with a Namibian-based company.

Under the agreement, the unnamed partner is expected to focus on the Kombat East area and will be responsible for underground and surface mining of known occurrences of lead mineralisation.

The company will also evaluate the Gross Otavi deposit 10km west of the mine and plans to upgrade it to produce lead concentrates.

"This agreement maintains activity on the mine site, facilitates our mining licence and brings local employment and labour to the area."

Kombat Copper president and CEO Bill Nielsen said: "We will benefit from this partnership as we now have the potential to start generating income from the Kombat property as our partner starts a scaled mining approach while we support the project with our extensive infrastructure and knowledge of the Kombat deposit.

"As well, this agreement maintains activity on the mine site, facilitates our mining licence and brings local employment and labour to the area."

Kombat Copper stated that the agreement is structured in such a way that it does not exploit the company’s core copper resource base and does not prohibit it from restarting full mining activities on the remainder of the deposit once technical and engineering studies conclude.

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By GlobalData

The company hopes to negotiate the agreement’s details of the after completing a definitive contract in early 2016.

The Kombat mine was operational from 1962 to 2008 with few interruptions and has significant existing infrastructure, including power, water, roads, and rail access.

Kombat also houses an 800m exploration shaft, which has been built at a cost of $30m.