- Australian Mines has signed a seven year take-off agreement to supply battery-grade cobalt and nickel sulphate to South Korean company SK Innovation
- Under the agreement SK Innovation has agreed to purchase 100 per cent of the battery-grade cobalt sulphate and nickel sulphate from the Sconi Project in Queensland
- The agreement is for seven years with the option to extend for a further six years
Australian Mines has signed a seven year take-off agreement to supply battery-grade cobalt and nickel sulphate to South Korean company SK Innovation.
Under the agreement SK Innovation has agreed to purchase 100 per cent of the battery-grade cobalt sulphate and nickel sulphate that is produced at the Sconi Project in Queensland.
SK has projects in petroleum, batteries, information and electronic materials, refining, chemical business and oil.
The offical agreement is for seven years but can be extended for a further six if both parties agree.
The agreement comes after the companies reached a preliminary agreement in March 2018.
Sale prices under the agreement are linked to the corresponding London Metal Exchange nickel price and Metal Bulletin cobalt price.
Australian Mines is a resource company that aims to produce and supply battery and technology metals to global markets.
The company’s flagship Sconi Project is one of the few large ore bodies of its type within Australia and is also considered the most advanced towards production.
The Project is located near Townsville, Queensland and has a mine life of 18 years but Australian Mines is looking to expand its project, meaning a potentially longer mine life.
The Sconi Project is predicted to produce 8,500 tonnes of cobalt sulphate (1,780 tonnes metal equivalent), 53,300 tonnes of nickel sulphate (11,900 tonnes metal equivalent) and 89 tonnes of scandium oxide.
Australian Mines gained up to 11.1 per cent today and is currently selling shares at 1.9¢ each.