NV has entered into a four-year marketing agreement to supply
Noble Group Ltd. with 200,000 tonnes per year of
special-high-grade and continuous galvanizing zinc produced by
its European smelters beginning Jan. 1, 2014.
will market the remaining 150,000 tonnes per year of European
commodity grade zinc itself once its agreement with Baar,
Switzerland-based Glencore Xstrata Plc is terminated at
year-end, the company said Oct. 1.
The zinc producer
announced several senior appointments in September to boost
marketing capacity as it was finalizing the deal with Noble (
amm.com, Sept. 16).
Under the terms of the
deal, Noble will offer Nyrstar a market premium and profit
participation for any upside movement, as well as
pre-production financing similar to that provided by Glencore,
The Hong Kong-based
trading house will also purchase a 1-percent stake in Nyrstar
for 6.4 million ($8.4 million), a 5-percent premium over
its three-day volume-weighted average share price Sept. 27.
beneficial multiyear offtake and marketing relationship ... we
believe will form the basis for new opportunities for Noble to
bring its leading logistics and supply services to zinc metal
consumers with the reliable market-leading Nyrstar production,"
Mark Hansen, Nobles global head of metals, said.
A version of this
article was first published in AMM sister publication Metal