PERTH (miningweekly.com) – ASX-listed WA Kaolin has inked a three-year offtake agreement with a Vietnamese distributor.
Under the terms of the offtake agreement, WA Kaolin is to supply 4 500 t/y, with a minimum 2 500 t/y, for three years, starting in July of this year.
Pricing for the agreement will be competitive to the world kaolin market delivered on a cost and freight (CFR) basis, and pricing of at least the minimum quantity will be negotiated on a quarterly basis through mutual negotiation and agreement.
“This is excellent news for WA Kaolin and builds further momentum as we near commencement of production for Stage 1 at the Wickepin kaolin project,” said CEO Andrew Sorensen.
“Combining this with previous offtake agreements and letters of intent announced, we have now secured contracts covering 90% of our expected Stage 1 output, prior to production commencing.
“As we near the Stage 1 production milestone, WA Kaolin is also well placed for expansion with funding to accelerate certain elements of Stage 2 development to increase production to 400 000 t/y secured. We are now incredibly close to becoming a significant kaolin producer on the world stage in a strengthening global market environment for the resource.”
Full production at the Wickepin project is targeted for before the end of the second quarter of this year.