Sandfire Resources NL (SFR) is pleased to advise that it has entered into a contract for the product (DSO) to be produced from its 100%-owned DeGrussa Copper-Gold Project in Western Australia. The contract is for the purchase of a minimum of 70,000 dry metric tonnes (dmt) of DSO between April 2012 and March 2013, representing the remaining 50 per cent of DSO production. The DSO will be produced as part of an initial open pit mining operation which is well advanced and on track to extract first chalcocite DSO in March 2012. Yunnan Copper will purchase the DSO on a CIF (Cost, Insurance and Freight) basis with the remaining commercial terms of the contract being confidential. The first shipment under the contract is scheduled for the second Quarter of 2012.
“I would like to take this opportunity to thank everyone within the Sandfire team for the diligent and focused way they have gone about their business this year, ensuring that 2012 will be the most important sales agreement with Yunnan Copper Corporation Ltd for the remaining high-grade Direct Shipping Ore second-largest alumina producer and largest aluminium producer in China, holds a controlling stake in Yunnan Copper. Sandfire’s Managing Director, Mr Karl Simich, said he was pleased to have commenced a relationship with one of China’s leading copper producers for the sale of DSO which completes off-take arrangements for DSO production from the DeGrussa Project. “This builds on the strong relationships and strategic partnerships we already have in place globally and ensures that we have comprehensive off-take arrangements in place to cover the entire output of high- grade direct shipping ore that will be produced during 2012 and into early 2013,” Mr Simich said.
http://www.traderdealer.com.au/fundamentals/sfr
Tags: copper mining, DSO, Gold Mining, Offtake agreement, Sandfire Resources, SFR
