Australian nickel miner Western Areas awarded new offtake contracts – one to Australia’s BHP Nickel West and one to China’s Jinchuan Group, for high grade Forrestania nickel concentrate on Tuesday.
The Nickel West contract starts on Feb 1, 2020, for a period of three years, or until completion of an aggregate quantity of 10,000mt/yr of nickel concentrate with a 30,000mt/yr aggregate limit. Nickel concentrate will be delivered in bulk to Nickel West’s Kambalda concentrator plant with payable rates subject to customary confidentiality clauses.
Nickel West’s nickel production in the first half of the fiscal year ending December 2019 dropped by 11pc to 35,000mt on major quadrennial maintenance shutdowns at their Kwinana refinery and Kalgoorlie smelter.
The Jinchuan contract also starts on Feb 1, 2020, for a period of two years or until completion of an aggregate quantity of 10,000mt/yr of nickel concentrate with a 20,000mt aggregate limit. Nickel concentrate will be delivered to China with confidential payable rates. Jinchuan is the largest nickel matte and cathode producer in China, supplying nickel to the emerging Electric Vehicle battery market.
Western Areas’ current contract with China’s Tsingshan Group will end on Jan 31 following execution of the new agreements.