Silkroad Nickel signs two offtake agreements totalling over S$65 million with Tsingshan Group

14-Aug-2018 Intellasia | | 6:52 AM Print This Post

• The Group’s production volume for August 2018 is expected to increase by 200% from 10,000 metric tonnes per month to 30,000 metric tonnes per month and, barring

unforeseen circumstances, the Group will gradually increase production volume to 100,000 metric tonnes per month by December 2018

• Negotiations underway to form a joint venture with a Chinese steel manufacturing company to build a smelter on the Group’s mine site in Sulawesi SGX-Catalist listed Silkroad Nickel Ltd. (“Silkroad Nickel” or the “Company”, and together with its subsidiaries, the “Group”), an Indonesian nickel mining group, is pleased to announce that it has entered into two offtake agreements (“Agreements”)with PT Ekasa Yad Resources, a company within the Tsingshan Group1.

The Agreements provide for the following:

1. the Group’s supply of 30,000 metric tonnes per month in the domestic market for 12 months from 1 September 2018 with an estimated contract value of over S$12 million;

and

2. the Group’ssupply of 100,000 metric tonnes per month of high grade nickel for export for 12 months with an estimated contract value of over S$53 million. The fulfillment

of this agreement will commence only after the Group has obtained the necessary export licence.

Mr Hong Kah Ing, Chief Executive Officer of Silkroad Nickel commented, “We are pleased to announce an increase in monthly production volumes and our new offtake agreements. We are also confident in obtaining the necessary export quotas and licence before the end of 2018. In addition, we are also pleased to announce that we have begun negotiations with another Chinese steel manufacturer to form a potential joint venture to build a smelter on our mine site in Sulawesi.”

The Agreements are expected to have a positive impact on the net tangible assets per share and earnings per share of the Group for the current financial year ending 31 December 2018.

None of the directors or substantial shareholders of the Company and their respective associates has any interest, direct or indirect, in the Agreements, save for their interests arising by way of their shareholdings and/or directorships, as the case may be, in the Company.

 

(Source: Media Release)

 


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