Consolidated signs offtake for Mexican zinc mine

22nd October 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – ASX-listed Consolidated Zinc has signed an offtake agreement for all of the zinc concentrate produced at its Plomosas project, in Mexico, for the entirety of 2022.

Latin American mining company Industrias Penoles S.A. de C.V. has exercised its option to purchace all of the zinc concentrate from Plomosas, and as part of the concentrate agreement, has an additional one year option to extend the purchase agreement until the end of December 2023.

The zinc concentrate sold to Penoles is processed at Penoles’ Met-Mex smelter located in Torreon, with the zinc treatment charges linked to the yearly zinc treatment charge benchmark, which is agreed yearly during the first quarter of each year between the major zinc miners and smelters.

The Met-Mex smelter is located approximately 600 km from Plomosas which delivers significant savings in transportation costs in comparison to other zinc smelters located further from Plomosas or in export markets.