New Century Resources has executed a 5.5-year offtake agreement with Nyrstar, covering 600,000t of zinc concentrate produced from the Century zinc mine in Queensland.
The offtake agreement includes a variable tonnage allocation to Nyrstar of 250,000t of zinc concentrate for the first 3.5 years, rising to 350,000t for the final two years of the agreement.
New Century is on track to relaunch production from the Century mine later this year. The deal with Nyrstar represents around 15 per cent and 35 per cent, respectively, of the scheduled production.
Evan Cranston, New Century chairman, said the company was pleased to establish the offtake with the world’s second largest direct end user of zinc concentrate with smelters located around the world.
“The term of the agreement, covering 5.5 years, clearly demonstrates the robust demand for Century zinc concentrate,” Cranston said.
Nyrstar has also agreed to suspend the arbitration proceedings that it launched against New Century earlier this year related to the validity of historical offtake agreements at the Century mine dating back to 2007.
Hilmar Rode, Nyrstar chief executive, said the company had traditionally been a significant long-term user of Century zinc concentrate.
“We are very pleased to have secured a new long-term supply agreement and are looking forward to continuing our long-standing successful relationship with the Cemtury zinc mine and its new owners New Century Resources,” Rode said.