JOHANNESBURG (miningweekly.com) – ASX-listed zinc miner New Century Resources has signed a new five-and-a-half-year zinc concentrate offtake agreement with Nyrstar Sales & Marketing.
The offtake agreement includes a variable tonnage allocation to Nyrstar, representing approximately 15% of scheduled production from the Century mine for the first three-and-a-half years of operation, increasing to around 35% for the remaining two years of the agreement.
The total contracted zinc concentrate tonnage under the Nyrstar offtake agreement is 600 000 t.
Nyrstar had previously commenced arbitration relating to the validity of historical Century mine zinc offtake agreements between the parties dating back to 2007.
The execution of this new offtake agreement will result in Nyrstar withdrawing all arbitration proceedings. In addition, the parties have also signed a deed of settlement and release confirming all historical agreements have been terminated.
According to New Century Resources, the Century mine hosts 2.2-million tonnes of Joint Ore Reserves Committee- (Jorc-) compliant zinc metal equivalent resources located within mineralised tailings, and over one-million tonnes of Jorc-compliant zinc and lead resources in the Silver King, South Block and East Fault Block base metal deposits. It also hosts several undeveloped phosphate deposits.
The company has shortlisted additional preferred offtake customers and is “progressing the development and potential execution of formal offtake agreements with these parties”.