Japanese buyers circle ATC product
PERTH (miningweekly.com) – Tungsten miner Hazelwood Resources has moved to secure offtake partners for its ATC ferrotungsten operation, in Vietnam.
The company reported on Monday that the ATC operation had signed long-term contracts with three Japanese ferrotungsten buyers, with the contracts scheduled in six-month periods with monthly call-offs.
The call-offs confirmed for the next six months represented over 45% of the planned production at ATC, with options to take over 65% of total production. While the details of the transactions were not made public, Hazelwood confirmed that the price and payment terms for the offtake agreements were superior to previous sales agreements secured on the European spot market.
Executive chairperson Mark Warren noted that the ATC plant completed a production run in early August, with a new production run to start this week. Combined, these would provide enough ferrotungsten to meet the initial call-off requirements.
ATC management would now consider increasing production, based on likely additional spot market sales.
The ATC project had the capacity to produce some 4 000 t/y of ferrotungsten alloy, equivalent to 3 000 t/y of contained tungsten.
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