Sirius Resources Looking to Supply Nickel Concentrate to Smelters

Reuters reported that according to Mark Bennett, managing director of Sirius Resources NL (ASX:SIR), the company is in late-stage negotiations to supply three major nickel smelters with up to 26,000 tonnes of nickel concentrate per year.

As quoted in the market news:

Sirius stock has risen more than sixfold in the two years since it discovered the high-purity Nova nickel deposit in west Australia, partly on expectations the concentrate would command a premium from smelting companies when output begins in late 2016.

Managing Director Mark Bennett said one of the companies involved in negotiations would probably take all the material, although he declined to name the firms involved.

However, he said that a steady supply of quality concentrate could help BHP Billiton attract more buying interest for the Nickel West division, which it is looking to sell.

Click here to read the full Reuters report.