Australian-based WMC Resources have signed a AUD$1 billion nickel supply deal with China’s Jinchuan Group Ltd. The agreement strengthens their 15 year relationship and WMC’s position in the world’s fastest growing nickel market.
Under the terms of the agreement WMC will supply 90,000 tonnes of nickel-in-matte over six years. It also adds to an existing 30,000 tonne agreement signed in December 2002.
Nickel-in-matte is a value added product, containing about 68% nickel. It is produced subsequent to the smelting of nickel ore. It will be supplied from WMC’s nickel smelter in Kalgoorlie in Western Australia.
Jinchuan is China’s largest producer of nickel, producing 60,000 tonnes of nickel per year, equating to 88% of Chinese production.
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