Western Areas has announced a renegotiated offtake deal with China’s Jinchuan Group, covering up to 26,000 tonnes of nickel concentrate over a two year period.
Managing director Daniel Lougher said the new deal comprised improved payability terms for Western Areas over the existing agreement.
Western Areas has been selling nickel concentrate to Jinchuan since July 2010.
Detailed terms of the new agreement remain confidential, while the concentrate will be shipped from the Port of Esperance.
Mr Lougher said a tender process for the concentrate attracted a number of bids from global investment and trading groups.
“Western Areas was encouraged by the strong competition for its nickel sulphide concentrate, which supports our view that there is a looming shortage of quality nickel concentrates in the market,” Mr Lougher said in a statement.
“Our concentrate has particular characteristics which make it very attractive for end users to smelt or blend with concentrates of lower quality.”
At close of trade today, Western Areas shares were down 0.46 per cent, trading at $4.35.