PERTH (miningweekly.com) – ASX-listed nickel miner Western Areas has negotiated a new offtake agreement with mining major BHP Billiton’s Nickel West division.
The new contract will run for the earlier of three years from February 2017, or the completion of the aggregate quantity, with up to 10 000 t/y of nickel-in-concentrate to be supplied, with an aggregate limit of 30 000 t.
The new contract is not an extension of the current contract with Nickel West, which will be completed on January 31, 2017.
Western Areas MD Dan Lougher on Tuesday described the agreement with Nickel West as an "excellent outcome", given the company’s long relationship, which resulted in customer, geographic and market diversity following an offtake contract with Chinese steelmaker, the Tsingshan Group, for 10 000 t/y of nickel contained in concentrate, for a three-year period, starting in February 2017.
“Western Areas has a strong fundamental belief in the long-term sustainability of nickel production in Western Australia and the execution of this three-year contract demonstrates our vision of a positive future,” Lougher said.
The contract with Nickel West completed the offtake tender process for Western Areas.
In addition to the new Nickel West offtake agreement and the recently agreed Tsingshan offtake agreement, Western Areas will also be supplying 2 000 t/y of contained nickel to Nickel West, under an offtake contract that expires at the end of June 2019.