This sulphate is to be produced from the AUZ’s wholly-owned Sconi Cobalt-Nickel-Scandium Project in North Queensland.
As per the original early-2018 term sheet, SK Innovation will purchase 100% of the battery-grade cobalt sulphate and nickel sulphate produced from Sconi for 7 years with a +6 year option.
According to the recently released bankable feasibility study (BFS), this equates to revenue of $512 million per year in average annual sales of cobalt sulphate and nickel sulphate.
Previously, SK Innovation was entitled to a commercial-in-confidence buyer discount on the base price.
Notably, SK Innovation could exercise this price discount option within three months of the release of the BFS, which has now lapsed.