Silkroad Nickel announced that it had entered into two offtake agreements with PT Ekasa Yad Resources, a subsidiary of the Tsingshan Group.
Under the agreements, Silkroad Nickel will supply 30,000 metric tonnes of nickel ore per month in the domestic market for 12 months from 1 September 2018, with an estimated contract value of over S$12 million, and supply 100,000 metric tonnes of high grade nickel ore per month for export for 12 months with an estimated contract value of over S$53 million.
These agreements are expected to have a positive impact on the net tangible assets per share and earnings per share of the Group for the current financial year.
Mr Hong Kah Ing, Chief Executive Officer of Silkroad Nickel commented that the company was pleased to announce an increase in monthly production volumes and the new offtake agreements.
“We are also confident in obtaining the necessary export quotas and licence before the end of 2018. In addition, we are also pleased to announce that we have begun negotiations with another Chinese steel manufacturer to form a potential joint venture to build a smelter on our mine site in Sulawesi”, said Mr Hong Kah Ing.
Tsingshan Group is a privately owned, multinational conglomerate based in Wenzhou City, Zhejiang Province, China. It is primarily engaged in the production and sale of stainless steel and related products to a diverse range of industries.