Nyrstar and New Century Resources executed a binding term sheet for a new 5.5-year offtake agreement covering 600,000 dry metric tons (dmt) of zinc concentrate produced from the Century zinc mine in Australia.

“This is the world’s second-largest direct end user of zinc concentrate with smelters located around the world,” New Century Executive Chairman Evan Cranston said. “The term of the agreement clearly demonstrates the robust demand for Century zinc concentrate.”

The term sheet for the offtake includes a variable tonnage allocation to Nyrstar of 250,000 dmt of zinc concentrate for the first 3.5 years, rising to 350,000 dmt for the final two years of the offtake agreement. This represents approximately 15% and 35%, respectively, of the scheduled production. New Century remains on track for its first zinc concentrate production in the third quarter of 2018. Terms of the offtake remain confidential.

Nyrstar agreed to suspend the arbitration proceedings against New Century that were commenced earlier in February relating to the validity of historical Century mine offtake agreements between the parties dating back to 2007. Withdrawal remains subject to documentation of the formal offtake agreement on terms consistent to the binding term sheet and the deed of settlement and release confirming all historical agreements relating to the Century mine have been terminated.