Panoramic Resources has had its offtake agreement covering all of the concentrate from the Savannah nickel mine extended by 10 years by Sino Nickel.
The company said it had signed an extended concentrate sales agreement with Sino Nickel, which is a joint venture between Jinchuan Group and Sino Mining International.
The terms of the agreement are similar to the terms of the original concentrate sales agreement signed in 2003, and are considered by Panoramic to be very competitive in global terms.
The Savannah concentrate will continue to be shipped from Wyndham to Jinchuan's smelter/refinery in Gansu province, northwest China.
The general terms and conditions of the new agreement include the following:
- Product - sulphide concentrate with a typical specifications of 7-8% Ni, 4-5% Cu, 0.5-1.0% Co, 40% Fe, 0.5-1.0% MgO
- Quantity - approximately 100,000 wet metric tonnes per annum (no minimum or upper limit)
- Payable metals - Ni, Cu and Co
- Price basis - agreed % of LME cash price for Ni and Cu and agreed % of Metal Bulletin Co price
- Life of new contract - from 1 April 2010 for a further 10 years
