Singaporean nickel producer Silkroad Nickel will supply 2.7mn mt of high-grade nickel to Tsingshan Group’s subsidiary PT Ekasa Yad Resources at an estimated value of $90mn.
The nickel company said in a market filing on Monday that it had set the minimum quantity at 50,000mt per month and that the estimated contract value is based on the Indonesian government’s benchmark price of the metal.
Hong Kah Ing, executive director and the chief executive officer, at Silkroad Nickel noted in the filing, that Silkroad is preparing to deliver its first shipment within the next two weeks and plans to increase nickel production from April 2021. The company has begun investing in its downstream nickel-pig iron facility and is also planning to use part of the expected cash flows from the contract to build its rotary kiln electric furnace (RKEF) smelter.