Heron Resources has secured an offtake agreement for the zinc, copper and lead production from its Woodlawn project near Tarago in New South Wales.
Louis Dreyfus Company (LDC) Metals has been awarded the base metal concentrate offtake from the Woodlawn project from the start of production until the end of 2021, or three-and-a-quarter years.
The agreement covers 100 per cent of the zinc, copper and lead concentrates produced over that time.
Heron managing director Wayne Taylor said the company had run a highly-competitive offtake process for the Woodlawn project’s concentrates over the past 12 months
“Zinc concentrates are particularly in short supply in the global marketplace, which is expected to remain tight for the next few years, and this has resulted in the company agreeing attractive commercial terms for 100 per cent of mine output during the critical first few years of production at Woodlawn,” Taylor said.
Woodlawn is expected to produce about 70,000 dry metric tonnes (dmt) of zinc concentrates, 30,000dmt of copper concentrates and 25,000dmt of lead concentrates annually.
LDC chief executive officer Paul Akroyd said the company would support Heron in the development of the Woodlawn project.
“This is full aligned with our strategy to build upon our existing Australian activity and continue to provide solutions for the needs of the Australian mining industry,” Akroyd said.