PERTH (miningweekly.com) – Base metals miner Consolidated Zinc on Monday announced that Industrias Penoles had exercised its option to purchase all of the zinc concentrate produced at the Plomosas operation, in Mexico, between January and December next year.
As part of the zinc concentrate offtake agreement, Penoles has an additional one-year option to extend the zinc concentrate purchases to the end of December 2023.
The zinc concentrate sold to Penoles will be processed at its Met-Mex smelter, in Torreon, Mexico, with the zinc treatment charges linked to the annual zinc treatment charge benchmark, which is agreed annually during the first quarter of each year between the major zinc miners and smelters.
The Met-Mex smelter is located 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, Consolidated Zinc told shareholders.