https://www.engineeringnews.co.za

Consolidated Zinc adjusts Plomosas offtake

19th January 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Base metals miner Consolidated has updated its offtake agreement with Industrias Penoles SA de CV that would reduce transport costs for the Plomosas concentrate that is delivered and sold to Penoles.

As part of the agreement, Consolidated Zinc has also granted Penoles an additional one-year option to extend the zinc concentrate purchase agreement, which covers all of the zinc concentrate produced at Plomosas, until the end of December 2023.

The zinc concentrate sales agreement previously in place used treatment charges linked to the annual zinc treatment charge benchmark, which is agreed upon annually during the first quarter of each year between the major zinc miners and smelters.

However, during 2020, the zinc spot price treatment charge for China-compliant concentrate continued to be significantly below the 2020 zinc treatment charge benchmark established earlier in the year.

Market forecasts have predicted that the 2021 zinc treatment charge benchmark is likely to be significantly lower than 2020, owing to a strong rebound in demand and limited new concentrate supply. Consolidated Zinc on Tuesday said that a reduction in the zinc benchmark treatment charges would benefit the company as the zinc treatment/transport costs were a major factor, resulting in an uplift in returns.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

EKATO Africa
EKATO Africa

Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.049 0.748s - 140pq - 2rq
Subscribe Now