Toledo Mining hit by off-take cancellation from Berong mine
11 November 2009
Toledo Mining, the AIM listed nickel mining company working in the Philippines, has been hit by news that one of the buyers of nickel laterite ore from its Berong mine has terminated its contract.
Toledo’s 56.1%-owned Berong Nickel Corporation (BNC) has received notice from Queensland Nickel Pty Ltd to cancel a contract under which Queensland is required to buy a minimum of 300,000 wet metric tons of nickel laterite ore per year from BNC until mid-2012.
BNC is apparently disputing the notice of termination and has instructed its legal advisors to consider all available remedies. Nevertheless, the company and its sales agents continue to be in negotiation for ore sales to Chinese and other nickel ore consumers.
The contract wrangle will not immediately affect the Berong mine because it is currently on care and maintenance and the annual shipping window is now closed until March 2010 due to sea conditions.
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