Electric vehicle battery manufacturer SK Innovation has signed an offtake agreement for 100 per cent of the cobalt and nickel produced at the Sconi project in north Queensland.
The initial agreement is for seven years, with an extension option, for up to 12,000 tonnes per year of cobalt sulphate and 60,000 tonnes per year of nickel sulphate.
Project proponent Australian Mines said it had extended the timeframe for the delivery of the project’s bankable feasibility study to the end of June 2018 to accommodate the SK Innovation agreement.
“The signing of the agreement with SK Innovation is a landmark occasion for Australian Mines and its shareholders,” Australian Mines managing director Benjamin Bell said.
“As the only Australian cobalt-nickel-scandium company to have secured an offtake for 100 per cent of its expected cobalt and nickel output, the company has, once again, demonstrated that the Sconi project in northern Queensland is the most advanced project of its type in Australia, and that Australian Mines is unequivocally a leader in Australia’s cobalt sector.
“Australian Mines is delighted to be partnering with a leading electric vehicle battery manufacturer in SK Innovation to develop the Sconi project – a company that has a solid track record in developing and operating multi-billion-dollar resource projects around the world, and we are looking forward to a long relationship with them.”