A global multi-metals business, with a market leading position in zinc and lead, has entered into an offtake agreement with one of the former largest zinc mines in the world.
Nyrstar announced this week that it has entered into an offtake agreement with New Century Resources, covering 600,000 dmt of zinc concentrate produced from the company’s Century Zinc Mine.
Under the binding term sheer, Nyrstar will receive a variable tonnage allocation of 250,000 dmt of zinc concentrate for the first 3.5 years and will se this rise to 350,000 dmt for the final two years of the agreement.
This represents approximately 15% and 35% respectively of the scheduled production. New Century remains on track for its first zinc concentrate production in Q3 2018.
Processing of open pit ore from Century came to a halt in late 2015, with the focus of previous owner MMG turning to the progressive rehabilitation and ultimate closure of the mine site.
Significant rehabilitation activities have already been undertaken by MMG, with over A$70M spent on rehabilitation to date.
A comprehensive plan of work is also in place to progressively take the mine site, the pipeline and the port facility to full closure over a long-term period through to 2050.
Commenting on the new agreement, New Century Executive Chairman Evan Cranston, said:
"New Century is pleased to establish this offtake with Nyrstar, which is 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. New Century looks forward to building a long term mutually beneficial relationship between the parties."
Nyrstar Chief Executive Officer, Hilmar Rode, added:
"Nyrstar has 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 continue our long standing successful relationship with the Century Zinc Mine and its new owners New Century Resources."