PERTH (miningweekly.com) – Tungsten developer King Island Scheelite has entered into a new tungsten concentrate offtake agreement with physical commodity trader Traxys Group, for 90 000 t/y of tungsten from its planned Dolphin project, in Tasmania.
King Island Scheelite on Monday told shareholders that the offtake agreement would see the company provide Traxys with some 7 500 t/m of tungsten trioxide in concentrate.
The agreement will start once the processing plant has been commissioned.
The new offtake agreement with Traxys means that some 70% of the expected production from the Dolphin project is now covered under offtake agreements.
An updated feasiblity study estimated that the project would require start-up capital of A$72.1-million to bring the opencut operation into production to produce 20 t/y of tungsten over an eight-year mine life.