Sandfire Resources has signed a sales agreement with the Yunnan Copper Corporation for the remaining direct shipping ore (DSO) to be produced from its DeGrussa copper-gold project in WA.
This is the second DSO sales contract reached by the Perth-based company, following a contract signed with MRI Trading in early November.
Yunnan Copper, China’s third largest copper producer, will purchase the DSO on a cost, insurance and freight basis, however the remaining commercial terms of the contract are confidential.
The contract is for the purchase of a minimum of 70,000 dry metric tonnes of DSO between April 2012 and March 2013, which makes up the remaining 50 per cent of production from DeGrussa.
The project is currently on track to extract first DSO in March 2012.
Sandfire managing director Karl Simich said he was pleased to have commenced a relationship with one of China’s leading copper producers for the sale of DSO which completes off-take arrangements for DSO production from the DeGrussa Project.
“This builds on the strong relationships and strategic partnerships we already have in place globally and ensures that we have comprehensive off-take arrangements in place to cover the entire output of high-grade direct shipping ore that will be produced during 2012 and into early 2013,” Mr Simich said.
“This will give Sandfire and the DeGrussa Project valuable exposure in the world’s most dynamic and fastest growing economy.”
