Products and Solutions Dec 15, 2014 11:00 AM
ThyssenKrupp Metallurgical Products concludes offtake agreement with NioCorp
ThyssenKrupp Metallurgical Products has expanded its product portfolio and concluded an offtake agreement for ferroniobium, a rare heavy metal, with NioCorp Developments Ltd. Under the ten-year agreement, ThyssenKrupp Metallurgical Products will purchase 3,750 tons of ferroniobium per year, which equates to approx. 50% of NioCorp’s total production. Niobium is mainly used in metallurgy in the manufacture of special steels and to improve weldability.
This offtake agreement makes the raw material trading experts the exclusive European distribution partner to NioCorp, which is developing the only primary niobium deposits in the USA at its Elk Creek project in Nebraska. The term of the agreement is scheduled to begin in 2017 when production starts. With the conclusion of the offtake agreement, ThyssenKrupp Metallurgical Products has also acquired the unilateral option of purchasing warrants for five million US Dollars at the current price (as at: December 10, 2014) of 0.67 Canadian Dollars each within one year.
Kai-Norman Knötsch, Chairman of the Management Board of ThyssenKrupp Metallurgical Products, says: “As there are very few suppliers of niobium and NioCorp is developing the only deposits in the USA, this is a highly attractive product for us. We are looking forward our future cooperation and hope to develop new sales markets in Europe as a result.” Mark Smith, CEO of NioCorp, adds: “We are extremely pleased to have one of the world’s leading commodity trading companies as a significant customer. Our team looks forward to building a long-term and mutually beneficial relationship with ThyssenKrupp Metallurgical Products.”