Offtake Agreements

In April 2019 KIS announced it had entered into an Offtake Agreement for tungsten concentrate with Wolfram Bergbau und Hutten AG, a wholly owned subsidiary of Sandvik AB, an international engineering group working within the mining and rock excavation, metal cutting and materials technology sectors.

The Wolfram Agreement is for the delivery of 140,000 metric tonne units or 1,400 tonnes of WO3, over a four-year period. This equates to the export of approximately 2,200 tonnes of concentrate, produced by the redeveloped Dolphin Mine over that period.

At full production, the redeveloped Dolphin Mine is expected to produce approximately 2,000 tonnes of WO3 per annum, contained in 3,100 tonnes of concentrate.

As such, the Wolfram Agreement represents approximately 20% of its annual production.

Negotiations with other international APT producers are at an advanced stage for the balance of the annual production.