- Mincor Resources (MCR) locks in a date for first production at its Kambalda nickel operations in Western Australia
- Mincor is set to return to production status in May, after reaching an agreement with BHP Nickel West to update the terms of ore tolling and off-take deals
- MCR says it hopes this move will allow it to achieve its previously announced milestone of delivering first nickel concentrate production in the June 2022 quarter
- The company is continuing to ramp up ore production during the commissioning phase as it looks to increase nickel concentrate production rates
- Mincor Resources last traded at $2.39 per share on April 28
Mincor Resources (MCR) has locked in a date for first production at its Kambalda nickel operations in Western Australia.
Mincor is set to return to production status in May after reaching an agreement with BHP Nickel West to update the terms of the ore tolling and off-take purchase agreement (OTCPA) for the project.
Amendments to the OTCPA include that Mincor will continue to be paid by BHP for nickel in concentrate, and copper and cobalt by-product sales on the same payable terms.
The grade-recovery curve is fixed for the first three months of production from May 2022 and will be reviewed by mutual agreement.
Ore delivered to the Kambalda Nickel Concentrator during each calendar month will be converted to an imputed nickel in concentrate. Mincor sales will then be based on that converted outcome.
Mincor said it hopes this move will allow it to achieve its previously announced milestone of delivering first nickel concentrate production in the June 2022 quarter.
“The recent amendments to the OTCPA agreed with BHP represent an elegant and sensible solution for the measurement of nickel concentrate within the Kambalda processing plant,” Managing Director David Southam said.
“Mincor’s ore deliveries to the end of May 2022 will be converted into an imputed nickel in concentrate, using a grade-recovery curve, thereby meeting our commitment to shareholders of delivering first production in the June 2022 quarter.”
Mincor said it will continue to ramp up ore production during the commissioning phase as it looks to increase nickel concentrate production rates.
Mincor Resources last traded at $2.39 per share on April 28.