PERTH (miningweekly.com) – ASX-listed Australian Mines has inked a binding long-term offtake agreement with battery producer LG Energy Solutions for mixed nickel/cobalt hydroxide product from the Sconi project, in Queensland.
LG Energy Solutions will purchase 71 000 t of nickel and 7 000 t of cobalt in the form of a mixed hydroxide precipitate over an initial six-year term, with the potential to extend the offtake agreement for another five years, by mutual agreement.
Australian Mines told shareholders on Monday that the offtake agreement was a major milestone for the company, and that the quantities covered in the offtake agreement would account for all of the projected production from Sconi, creating a sound customer foundation to underpin the development of the project.
The offtake agreement was subject to only one condition precedent, being Australian Mines securing financing for the construction of the Sconi project before the end of June next year.
The company said on Monday that it would now move to swiftly finalise agreements with financing partners for the A$1.5-billion project, which is expected to have a mine life of 30 years.
The proposed mine would co-exist alongside a military training facility which forms part of the Australia-Singapore military training initiative.