• Contracts signed for up to 65% of near-term planned production
• Favourable pricing and payment terms
• Potential for increases to planned production as a result
Hazelwood Resources Limited (ASX: HAZ) is pleased to announce that its 60% owned ATC
ferrotungsten operation has signed Long Term Contracts (LTCs) with three Japanese buyers of
ferrotungsten. These buyers are major buyers of ferrotungsten in the Japanese market.
Ferrotungsten contracts are typically scheduled in six month periods with monthly ‘call-offs’.
The call-offs confirmed for the next six months represent over 45% of the planned production at
ATC with options to take that to over 65%. Whereas the buyer details and payment terms cannot
be released as they are commercially sensitive, HAZ can confirm that the price and payment
terms are superior to previous sales HAZ has secured on the European spot market.
These sales enable ATC to plan production in an orderly manner with concentrate purchase
contracts on matched terms to preserve operating margins.
ATC completed a production run in early August and a new production run for September that
starts today will be combined to provide enough ferrotungsten to meet initial call-off requirements.
Management will consider increased production based on likely additional spot market sales
offtake.
Commenting on the sales success, Hazelwood Executive Chairman Mark Warren said “We are
honoured to be awarded these contracts by our Japanese customers. We believe these contracts
reaffirm our customers’ recognition of the premium ferrotungsten produced at ATC. These are
significant contracts and place ATC in the best position for sales its short history. These are an
important step in our change plan for improved operational efficiency and profitability at ATC.”
