Jubilee Secures New Nickel Off-Take
Tuesday, August 28th, 2007
Jubilee Mines NL is pleased to announce that it has entered into an off-take agreement with BHP Billiton for the sale of nickel concentrate production from its Cosmos Nickel Operations in Western Australia for the period from 1 October 2007 to 30 September 2008.
The new off-take agreement will cover ongoing high-grade nickel sulphide production from the AM1, AM2 and Tapinos deposits and initial production from the new Prospero mine, which is scheduled to commence late in the first quarter of calendar 2008.
BHP Billiton is the worldâ€™s third largest producer of nickel-in-concentrate, providing 16% of global production, with key assets including world-class mining operations at Mt Keith and Leinster, the Kambalda Nickel Concentrator, the Kalgoorlie Nickel Smelter and the Kwinana Nickel Refinery.
Commenting on the new off-take agreement, Jubileeâ€™s Executive Chairman, Mr Kerry Harmanis, said: â€œWe are very pleased to announce this off-take agreement with BHP Billiton following the conclusion of a very competitive bid process for our high-grade nickel concentrate, which is regarded as a premium quality product in world markets.â€
â€œWe have been able to secure excellent terms which reflect a premium price for a premium product,â€ he continued.
â€œOur existing one-year off-take agreement with CVRD Inco expires on 30 September, 2007. Inco (CVRD Inco) have been a great business partner dating back to November 1998 and our relationship remains strong.â€
â€œAs we move into a new phase of development and expansion both at Cosmos and at our new Sinclair Project, we look forward to working closely with BHP Billiton and develop a strong, cooperative relationship into the future,â€ Mr Harmanis added.