Boliden offtake deal sets the stage for potential restart of mining at Nkomati – ARM
South Africa's African Rainbow Minerals (ARM) has entered into a conditional nickel concentrate sale agreement with metals provider Boliden Commercial for the offtake of nickel concentrate from the Nkomati nickel mine, in South Africa.
ARM says the transaction supports the potential restart of mining at Nkomati and strengthens the the mine's restart business case by securing an offtake route for future nickel concentrate production.
The offtake agreement provides for the sale of nickel concentrate over a multi-year period, and is subject to a number of conditions precedent, including ARM board approval of the restart of openpit mining of nickel-bearing ore at Nkomati, the completion of responsible sourcing due diligence by Boliden and the receipt of all required regulatory approvals.
Should the conditions precedent be met, concentrate will be shipped from Nkomati to Boliden's Harjavalta smelter, in Finland, for processing.
ARM states that the Harjavalta smelter operates established flash smelting technology with among the lowest carbon dioxide emissions per tonne of nickel produced globally and is certified under the Nickel Mark and Copper Mark responsible production frameworks.
The offtake route therefore provides Nkomati with access to a European market increasingly focused on responsibly-sourced nickel units, supporting ARM’s positioning in the clean energy value chain.
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