Sirius Resources agrees 3 year nickel concentrate offtake deal with Glencore

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Nova discovery drillhole Image credit: http://www.siriusresources.com.au/gallery-nova_discovery_drillhole.php

Sirius Resources has agreed to supply Glencore with half of the nickel sulphide concentrate produced at Nova for a period of three years from the commencement of its Nickel project, which is expected to start in late 2016.

Nova discovery drillhole Image credit: http://www.siriusresources.com.au/gallery-nova_discovery_drillhole.php
Nova discovery drillhole
Image credit: www.siriusresources.com.au

This is the third offtake agreement that Sirius has signed this year after the miner made similar arrangements with BHP Billiton Nickel West and Trafigura.

Sirius said that all of Nova’s forecast nickel and copper sulphide concentrate for the first three years of production has now been allocated between the three customers.

“We are pleased to have completed the final part of our preferred strategy with such an attractive offtake deal with Glencore,” said Sirius’ Managing Director Mark Bennett, adding that the terms of the offtake agreement were confidential.

“We have now secured offtake for all of Nova’s nickel and copper production for the first three years of the mine’s initial ten year life, and are looking forward to a productive relationship with Glencore.”