Price to jump - oversold
Jubilee to make WA announcement soon
AdvertisementNickel miner Jubilee Mines Nl says there has been fierce competition to secure the offtake from its operation in Western Australia, with a contract announcement expected within two weeks.
Jubilee executive chairman Kerry Harmanis said nickel offtake from its Cosmos operation had been competitively sought after, with the company in negotiations with current partner CVRD Inco.
"It is time for renewing our offtake contract with Inco and we're currently negotiating that," he said at the Diggers and Dealers forum in Kalgoorlie.
"It (nickel concentrate) has been very, very competitively sought.
"We would hopefully be saying something about that in a couple of weeks, certainly premium returns for a premium product."
Jubilee's current offtake agreement with CVRD Inco expires in September and Mr Harmanis wouldn't be drawn on whether the contract would be awarded to the group.
"I'm not prepared to say yet. We'll mention it when we award the contract in a couple of weeks," he said at the Diggers and Dealers forum in Kalgoorlie.
Mr Harmanis was bullish on the outlook for nickel, predicting China would drive an increase in demand over the next 10 years.
Mr Harmanis said on Wednesday China's appetite for nickel would increase over the next decade.
"Japan, Taiwan and Korea between them consume an average of 15 kilograms of nickel per capita per annum," he said at the Diggers and Dealers forum in Kalgoorlie.
"China consumes five (kilograms of nickel per capita per annum).
"So if you do the calculation, the next ten years with China going to 15 (kilograms of nickel per capita per annum) ... that's an extra 1.5 million tonnes of nickel required per annum.
Jubilee mines nickel from its Cosmos operation in the Eastern Goldfields of Western Australia.
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