AN: Australian Nickel producer signs BHP finance agreement
Nickel producer Western Areas NL (ASX:WSA) has signed an offtake and $A45 million ($US29.27 million) financing agreement with BHP Billiton Ltd (ASX:BHP), with the funds earmarked for mine development and plant expansion.
The company, which operates the Flying Fox nickel mine in the Forrestania region of Western Australia, has signed a heads of agreement to sell up to 10,000 tonnes of nickel concentrate to BHP Billiton per year.
Under the agreement, BHP Billiton will provide Western Areas with $45 million to develop the Spotted Quoll nickel mine and expand the capacity of its concentrator.
Western Areas will sell 75,000 tonnes of nickel in concentrate in total to BHP Billiton, with the global miner able to negotiate an extension to the contract.
