Tungsten: King Island Scheelite secures offtake with Austria’s WBH

Dolphin Tungsten mine

Australian-headquartered King Island Scheelite (KIS), which is developing the brownfield Dolphin tungsten mine project on King Island off the coast of Victoria, has signed an offtake agreement with Austrian company Wolfram Bergbau und Huetten, a leading producer of refined tungsten.

The offtake agreement is for 1.4kt of concentrate on a 100% WO3 basis (1.1kt contained W) over a four-year period, representing around 20% of planned annual production, and indexed to the Fastmarkets MB price for ammonium paratungstate (APT).

The take or pay contract is subject to KIS achieving certain financial and operational milestones before end-March 2021, including commencement of groundworks after placement of orders for long-lead time items, start of dry commissioning, and completion of ramp up.

Roskill view:

The agreement makes KIS one of the frontrunners in the next wave of tungsten mine developers that are at the financing and permitting stage, at which Roskill has identified 14 projects. In March 2018, Almonty Industries secured a 10-year offtake for its Sangdong project in South Korea, while in November 2018 Australian tungsten developer Thor Mining appointed Argent Partners to assist with arranging offtakes and financing for the Molyhil project.

Roskill’s NEW Tungsten: Outlook to 2028 report was published in March 2019. Click here to download the brochure or sample pages or access further information.

To discuss the tungsten market with Roskill, contact Jessica Roberts: jessica@roskill.com