PERTH (miningweekly.com) – Nickel miner Western Areas has signed an offtake agreement with Japanese major Sumitomo Metal Mining for high-grade nickel sulphide precipitate (NSP) from the mill recovery enhancement project (MREP) at the Forrestania nickel operation.
No set volume has been agreed upon; however, while not an exclusive supply agreement, it is expected that Sumitomo would take all of the NSP produced over a 12-month term, with the agreement expiring at the end of June 2020.
Western Areas MD Dan Lougher said on Friday that the company was pleased to announce a longer-term offtake agreement from the MREP, following completion of multiple spot sales to various parties.
“The execution of the agreement with Sumitomo 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.
“Formalising a relationship with a high quality international resource company with downstream processing capabilities and direct links into the electric vehicle battery market is a significant step forward in our strategy to supply diversified nickel products into the rapidly evolving nickel market.”