Western Areas Limited (ASX:WSA) has signed an improved offtake contract with China's biggest nickel company Jinchuan Group Limited.
Under the deal the mining company will sell up to 26,000 tonnes of nickel in concentrate from next month for the following two years.
Western Areas started selling nickel concentrate to Jinchuan in 2010 and the latest contract is understood to include improved payability terms for Western Areas over the existing agreement.
While the detailed terms of the new agreement have not been disclosed Western Areas says the tender attracted bids from a number of major global operating, investing and trading companies.
The company now produces between 25,000 tonnes and 26,000 tonnes of nickel in concentrate per annum and sells to BHP Billiton Limited
(ASX:BHP) Nickel West in Australia and Jinchuan in China.
Western Areas booked a net profit of $40 million in the 2012 financial year.
