Australian Mines to supply battery minerals to SK Innovation

Advanced battery materials developer, Australian Mines Limited and SK Innovation have executed a long-form off-take agreement that replaces and expands upon the agreed terms of the binding term sheet executed by the companies in February 2018.

Under the Agreement, SK Innovation has agreed, subject to the satisfaction of certain conditions precedent, to purchase 100% of the battery-grade cobalt sulphate and nickel sulphate produced from Australian Mines' wholly-owned Sconi Cobalt-Nickel-Scandium Project in North Queensland for an initial seven-year period which may be extended by mutual agreement for up to a further six years.

Sales prices under the Agreement are linked to the corresponding London Metal Exchange nickel price and Metal Bulletin cobalt price. Due to SK Innovation not having exercised its subscription or investment option, the final long-form off-take agreement does not contain a buyer discount on the base price of cobalt and nickel production from the Sconi Project.