An agreement has been signed this week under which LDC Metals will offtake the zinc, copper and lead concentrates produced from the Woodlawn zinc-copper project owned by Heron Resources in New South Wales.
The deal is scheduled to last from the start of production through to the end of 2021.
Located near Tarago, 250km south-west of Sydney, estimated production capacity at the Woodlawn site is around 70,000 dry metric tonnes (dmt) of zinc concentrates, 30,000dmt of copper concentrates, and 25,000dmt of lead concentrates per annum.
LDC Metals CEO Paul Akroyd said: “We are very pleased to be able to partner up with Heron Resources and support them for the development of the Woodlawn Project.“
“This is fully aligned with our strategy to build upon our existing Australian activity and continue to provide solutions for the needs of the Australian mining industry.”
Heron Resources managing director and CEO Wayne Taylor said: “Over the past 12 months, we have run a highly competitive process for the much-sought-after concentrates from the Woodlawn Project.
“Zinc concentrates are particularly in short supply in the global marketplace, which is expected to remain tight for the next few years, and this has resulted in the company agreeing attractive commercial terms for 100% of mine output during the critical first few years of production at Woodlawn.”