Mincor has completed the final drafting of its offtake agreement with BHP Nickel West for material from its Kambalda nickel sulphide business.
Given the significance of the agreement, Mincor revealed that a number of internal approvals are required before both parties can execute the binding documentation.
Subsequently, Mincor and BHP Nickel West have agreed to extend the deadline for execution of the offtake agreement until August 18. The completion date had previously been announced as July 18.
Mincor managing director David Southam said the company had been working well with BHP Nickel West to draft the long-form offtake agreement.
“With drafting almost complete, we’ve allowed ample time for the necessary internal review processes on both sides to run their natural course. BHP Nickel West and Mincor believe that no further extensions will be required,” Southam said.
“We are looking forward to signing the final agreement with BHP Nickel West in the very near future.”
The deal is set to replace the historical 20-year agreement that expired between Mincor and BHP Nickel West in February this year.
It will see BHP Nickel West use Mincor’s Kambalda nickel concentrator to process 200,000 to 600,000 tonnes of nickel ore per year.
Mincor will also sell nickel-in-concentrate to BHP, dependent on the average monthly London Metal Exchange nickel price.
The company decided to pursue the offtake agreement after weighing up several alternatives, such as investing in its own stand-alone nickel concentrator and toll-treating its ore via third parties.