Louis Dreyfus Company Metal’s (LDC Metals) has signed an agreement for the offtake of zinc, copper and lead concentrates produced from Heron Resources’ Woodlawn zinc-copper project in New South Wales (NSW), Australia.

Under the deal, LDC Metals will offtake the base metal concentrate for a span of around three and a quarter years, running from the start of production through to the end of 2021.

The agreement allows offtake of the entire production output of the zinc, copper and lead concentrates until the contract ends in 2021.

Heron Resources managing director and CEO Wayne Taylor said: “Over the past 12 months, we have run a highly competitive process for the much-sought-after concentrates from the Woodlawn Project.

“Zinc concentrates are particularly in short supply in the global marketplace, which is expected to remain tight for the next few years, and this has resulted in the company agreeing attractive commercial terms for 100% of mine output during the critical first few years of production at Woodlawn.”

“Zinc concentrates are particularly in short supply in the global marketplace, which is expected to remain tight for the next few years.”

On average, production at Woodlawn is estimated to be around 70,000 dry metric tonnes (dmt) of zinc concentrates, 30,000dmt of copper concentrates, and 25,000dmt of lead concentrates per annum.

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Located near Tarago, 250km south-west of Sydney, the site produces metal concentrates through processing a combination of underground ore and reclaimed tailings ore.

Alongside funds earned from the primary metal in each of concentrate, additional revenue is generated from the gold and silver content in the lead and copper concentrates through byproducts.

LDC Metals CEO Paul Akroyd said: “We are very pleased to be able to partner up with Heron Resources and support them for the development of the Woodlawn Project.

“This is fully aligned with our strategy to build upon our existing Australian activity and continue to provide solutions for the needs of the Australian mining industry.”

The agreement allows Heron Resources to manage its working capital requirements and securing bulk shipping freight rates.