Mincor Resources NL has issued an operations and guidance update, saying it will continue delivering on-specification ore to BHP and work to improve orebody knowledge to enable the optimisation of its forward mine plan to consistently deliver on-specification products.
According to Mincor, it combines ore sourced from its Northern and Southern Operations to deliver a blended product to BHP’s Kambalda Nickel Concentrator.
The ore is subject to product specification requirements, including a nickel-to-arsenic ratio.
While BHP has been accepting off-specification products, both companies are working together to explore and test new methods to better manage off-specification products moving forward.
Mincor previously engaged in discussions with BHP regarding potential amendments to the off-take terms to provide ongoing flexibility concerning product specification requirements and provide it with certainty regarding its ability to deliver 100 per cent of mined ore to BHP.
The company was notified on 29 March that BHP did not agree to amend the off-take agreement specifications.
Given the lack of certainty regarding the future acceptance of any off-specification products and the incomplete status of potential solutions, Mincor has decided to withdraw its previous guidance posted on the Australian Securities Exchange (ASX) on 7 March.
The company said it would stockpile any ore that BHP will not accept due to product specification requirements, allowing it to blend the ore with other Mincor ore sources at a later date.
