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Silkroad Nickel signs US$290M long-term off-take agreement

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Silkroad Nickel signs US$290M long-term off-take agreement

Indonesia's Silkroad Nickel Ltd. unit PT Teknik Alum Service entered into a long-term off-take agreement with PT TBR to supply 15 million tonnes of nickel ore over a five to eight year period, beginning March 2020, reported Dec. 14.

The estimated total contract value of the agreement is over US$290 million, according to the report.

Silkroad Nickel CEO Hong Kah Ing said that the agreement will not only allow the company to ramp up production and start the exploration of new areas within the existing concession, but to also consider the acquisition of new areas.

PT TBR is part of Qingdao Hengshun Zhongsheng Group Co. Ltd. a company majority owned by the Qingdao state government of China.