Mincor Resources secures long-term nickel deal with BHP’s Nickel West
9th August 2019
Resources Rising Stars
Mincor Resources has signed a long-term agreement with mining giant BHP to supply nickel concentrate (reports The West Australian).
BHP’s Nickel West division will process up to 600,000 tonnes a year of nickel sulphide at its Kalgoorlie smelter out to 2025 once Mincor has restarted its operations in December.
Mincor put its mines on care and maintenance in February 2016 as London Metal Exchange nickel prices sank to decade lows below $US8000 a tonne.
Prices have since recovered to about $US15,450.
The agreement comes amid BHP’s strategy to ramp up sales of its nickel products to the emerging battery industry and will alleviate some pressure on BHP to find replacement sources of feed.
BHP’s long-term supply deals with local nickel miners Western Areas and Independence Group are due to be renewed this year.
The agreement replaces a 20-year old deal signed between the two miners.
Mincor will get revenue from its sales of the nickel-in-concentrate to BHP at LME nickel prices.
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