Sirius Resources NL (ASX:SIR) has reached agreement with BHP Billiton (ASX:BHP) Nickel West Pty Ltd to supply approximately half of its planned nickel sulphide concentrate production from Nova.
The agreement is for a period of three years from commencement of production.
Sirius will truck concentrate by road from the Nova mine site to Nickel West’s
processing facilities at Kambalda.
The commercial terms of the offtake agreement are confidential.
Sirius is in discussions with other parties for the remaining half of the expected nickel concentrate production from Nova and intends to conclude a second offtake contract by the middle of 2015.
Negotiations for the sale of Nova’s copper sulphide concentrate are advancing with another party.
Nova:
- DFS forecast C1 cash cost of US$1.50/lb; and
- DFS forecast all-in sustaining cash cost of US$2.09/lb.
