Australian Mines Ltd agrees deal with LG Energy for nickel-cobalt supply

Australian Mines

16/08/2021 05:38

Aug 16 (Reuters) - Australian Mines Ltd  AUZ.AX  signed a
deal with the battery unit of South Korea's LG Chem  051910.KS 
on Monday to supply 100% of the projected nickel and cobalt
output from the miner's flagship Sconi Project in North
Queensland.
    The six-year binding offtake deal secures key metals for LG
Energy Solution used to make lithium-ion batteries that go into
electric vehicles at a time when battery producers around the
world are scouring for supply. 
    Under the terms of the deal, Australian Mines will supply
71,000 dry metric tonnes (dMt) of nickel and 7,000 dMt of cobalt
from its Sconi project from 2024.
    Australian Mines' Sconi project has a 30-year life span and
is expected to produce 1.4 million tonnes of nickel sulphate and
0.2 million tonnes of cobalt sulphate over that period. 
    The agreement, however, is conditional on Australian Mines
securing financing to construct the project by the end of June
2022, the miner said in a statement.

 (Reporting by Savyata Mishra in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Savyata.Mishra@thomsonreuters.com;))