Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Consolidated Zinc has struck an offtake agreement over all of the zinc concentrate produced at its Plomosas mine, in Mexico, until December 2020, with the option to extend for a further two years.
Consolidated Zinc reported on Wednesday that its subsidiary Minera Latin American Zinc had executed the offtake agreement with Industrias Penoles, which has a smelter in Torreon.
The offtake agreement contains an option for Penoles to extend the purchase agreement by a further two years, until the end of December 2022, and declare the volume of zinc concentrate to purchase in 2021 and 2022 on the exercise of this option.
Consolidated started mining Plomosas in September of last year, with the project selling 2 381 t of zinc in the nine months to September this year, along with 641 t of lead.
Lead concentrate from the Plomosas mine is currently being sold to global commodity trading houses at spot volumes on short-term contracts.