Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
The Board of Western Areas (TSX:WSA)(ASX:WSA) is pleased to announce an important milestone for the company. Since the first shipment ten months ago, Western Areas has exported over 100,000 tonnes of high grade nickel concentrate from Esperance Port to Jinchuan in China. This represents a gross value of over US$300 million based on average nickel prices since shipping commenced.
Nickel concentrate is transported from Western Areas’ processing plant at Forrestania to Esperance in sealed containers which are shipped directly to China. Sealed containers meet the highest environmental standards for handling and transporting concentrate and Western Areas now has over 1200 containers available for exporting.
In addition to the contract to sell a total 25,000 tonnes of nickel in concentrate to Jinchuan, Western Areas has a contract to sell 10,000 tpa nickel in concentrate to BHP Billiton. There is also a separate agreement to sell oxide and transitional ore from the Spotted Quoll mine to Minara Resources in Western Australia.
High levels of nickel production were again reported from the Forrestania operations in May. Over 3,500 tonnes of nickel in ore were mined from Flying Fox and Spotted Quoll and 2,379 tonnes of nickel in concentrate were produced for the month. Production details will be included in the June quarterly activities report which is expected to be released in mid July.
“The production and logistics teams at Western Areas are justifiably proud of their involvement in what is now a significant new export industry for Australia. The fact that this is being done to the highest possible environmental standards using Western Areas’ distinctive yellow containers is a credit to everyone involved,” said Managing Director Julian Hanna.
