 TORONTO (miningweekly.com) – Vancouver-based Farallon Mining has extended the zinc and copper concentrate offtake agreements it has with Trafigura Beheer for two years, the firm said on Thursday.
Farallon operates the G-9 mine in Mexico, where it produces zinc, copper, gold and silver.
The zinc and copper concentrate contracts, which have been extended until December 2014, include better terms to reflect the current market, as well as adjustments for the quality of Farallon's concentrates, the company said.
Concentrates from G-9 have been shipped for more than two years to smelters in Korea, China, Japan and Canada.
The concentrates contain unusually low levels of impurities, but are high in precious metals, making them particularly attractive to smelters, the firm said.
For zinc, a fixed treatment charge has been negotiated for the tonnage shipped between July 1, 2010, and March 30, 2011.
From April 1, 2011 to September 30, 2012, a discount over the benchmark treatment charges will be applied to 50% of zinc concentrates production and, starting on October 1, 2012, a discount over the benchmark treatment charges will apply to 100% of Farallon production of zinc concentrates.
In the case of copper concentrates, fixed treatment and refining charges apply, however, from August 2011 benchmark treatment and refining charges will be applied.
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