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Mincor inks nickel off-take with BHP unit over Kambalda mine

Mincor Resources NL said March 19 that it signed a term sheet with BHP Billiton Nickel West Pty. Ltd. that will serve as a basis for a binding off-take agreement, part of the former's strategy to restart mining operations at the Kambalda nickel mine in Western Australia.

The deal, which replaced a historical 20-year agreement between Mincor and the BHP Group unit that expired in February, gives BHP the right to process a minimum of 200,000 tonnes per annum and up to 600,000 tonnes per annum of nickel ore using the concentrator at Kambalda. The deal will start on the delivery of first ore and terminate either on the fifth year after the first delivery or Dec. 31, 2025, whichever occurs first.

"With the production solution for Mincor's high grade nickel sulfide ore now settled, our focus turns to ramping up our studies to feasibility status while committing additional funding for an accelerated drilling program, particularly at our greenfields discovery at Cassini," Managing Director David Southam said.

The Australian miner also outlined plans to conduct an analysis on early start options with BHP Nickel West.