- Western Areas has signed an Offtake Agreement with Sumitomo Metal Mining for the delivery of its high-grade nickel sulphide precipitate (NSP)
- Contract expires June 30, 2020
- NSP is a new high-grade product stream which grades at 45 per cent to 50 per cent of nickel
Western Areas has signed an Off-take deal with Sumitomo Metal Mining for the delivering high-grade nickel sulphide precipitate (NSP).
The company’s NSP is found at the Mill Recovery Enhancement Project located at the Forrestania Nickel operation.
The contract includes no set volume to be supplied, but it is expected that all product produced will be sold into the agreement.
The contract is signed for 12 months and it will expire June 30, 2020. Western Areas will pay for the cost, insurance and freight of its NSP product that will be sent to Oaska.
SMM is a Japanese mining and refining conglomerate company.
NSP is a new high-grade product stream which grades at 45 per cent to 50 per cent of nickel.
NSP is separated from the company’s conventional nickel sulphide product which grades at 14 per cent nickel and is supplied under existing offtake contracts with Tsingshan and BHP Billiton Nickel West.
The company has been supplying SMM with the product on a spot sale basis for many months now.
Western Areas Managing Director, Dan Lougher is happy with the agreement and is excited for the future of its NSP product.
“The execution of the agreement with SMM validates the market demand for this premium NSP product, while providing the contractual framework to streamline deliveries and remove the need for monthly negotiations on terms prior to each shipment,” he said.
Western Areas is a leading nickel producer with projects around Australia.