HARARE, June 26 (Reuters) - Shares in Premier African Minerals (PREM.L) plunged 40% on Monday after the company declared force majeure at its Zimbabwe lithium mine, citing a defect at its processing plant. Premier said it issued a force majeure notice to Canmax on June 25 because milling problems at its recently completed plant had affected production plans. "The company is unable to deliver product within the stipulated dates as set out in the agreement," Premier said. Triggering a force majeure clause in contracts allows certain terms of an otherwise legally binding agreement to be ignored because of unavoidable circumstances. However, in the context of the current stage of discussions with Canmax in respect of the amended agreement, Premier will now engage with these other interested parties," it said.

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Persons: majeure, Canmax, Nelson Banya, David Goodman Organizations: African Minerals, China's, Premier, Canmax, Thomson Locations: HARARE, Zimbabwe, Canmax, China, Europe