May 17, 2008

BHP Billiton to buy nickel from Metallica Minerals

Platts reported that BHP Billiton has agreed to buy 100% of contained nickel from the Lucky Break Nickel Project in Queensland, owned by Australia's Metallica Minerals and its joint venture partner Metal Finance Corp.

The contained nickel produced from the project will be refined at BHP Billiton's Yabulu nickel refinery near Townsville in north Queensland.

Metallica said that under the agreement, BHP Billiton will buy 1,500 to 1,800 tonne per year of contained nickel for the life of the operation, based on an agreed percentage of London Metal Exchange prices for the metal, but it did not disclose the percentage amount.

Metallica added that the nickel supply agreement has significantly enhanced the Lucky Break operation by providing a secure long term local market for the project on favorable commercial terms, and access to a broad range of technical and commercial skills.

Construction of the Lucky Break project has started and it is expected to be commissioned end 2008.