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Nui Phao

Offtake Contracts

We have already secured offtake contracts for all of products, using an approach including short and long-term strategies.


On July 29, 2013, H.C. Starck, a leading worldwide manufacturer of technology metals and one of the biggest companies in the global tungsten industry, and Nui Phao Mining, announced the signing of definitive agreements to establish a joint venture for the production of value-added tungsten chemicals in Vietnam.

Nui Phao Mining and H.C. Starck owns 51% and 49%, respectively, of the joint venture, Nui Phao – H.C. Starck Tungsten Chemicals Manufacturing ("NHTCM”), which will process all of Nui Phao Mining’s tungsten concentrate into higher value-added deep processed tungsten chemicals such as APT and BTO. The joint venture will be able to deep process up to 10,000 tons of tungsten concentrate per annum from Nui Phao. H.C. Starck will operate the joint venture, and has committed to buy a significant share of the production for its own internal use. The company will also support marketing of the remaining product through the joint venture.

On January 15, 2014, NHTCM received the investment certificate for its plant. Construction of the integrated facility is under progress with commissioning commenced in December 2014 and the plant commences commercial production in the second quarter of 2015.


An offtake agreement for fluorspar (the "Fluorspar Offtake Agreement”) was amended and executed on December 19, 2012 between Nui Phao Mining and CMC Cometals, pursuant to which CMC Cometals undertook to purchase the first 200,000 dry metric tonnes ("DMT”) of acid-grade fluorspar concentrate (the "Fluorspar Product”) which will not be less than 97% CaF2. If Nui Phao Mining is able to produce and deliver in excess of 200,000 DMT of the Fluorspar Product in a year, it will have the option to sell the excess either to CMC Cometals or to CMC Cometals’ customers at prices to be agreed between the parties.

The Fluorspar Offtake Agreement is for an initial term until the six anniversary of the full capacity date which is the date that Nui Phao has produced at least 12,000mt/ month of acid-grade fluorspar concentrate for 3 consecutive months. The six year term will automatically be extended for a period of four years unless, not later than 180 days prior to the expiration of the initial term, Nui Phao Mining and CMC Cometals do not agreed to the extension. This renewal will continue to be extended automatically for successive periods of one year, unless either party elects otherwise.



An offtake agreement for bismuth (the "Bismuth Offtake Agreement”) was executed on 10th January 2013 between Nui Phao Miningand 5N Plus Inc. In the agreement, Nui Phao agrees to sell and deliver to 5N Plus, and 5N Plus agrees to take and pay for, up to 2,500mt of contained bismuth in the Bismuth Product per year. The offtake starts upon commencement of production at Nui Phao mine. If the actual production of Bismuth Product is forecast by Nui Phao to be higher than the Minimum Quantity in any year (the "Excess Product”), the quantity to be purchased by 5N Plus may be amended accordingly by mutual agreement between 5N Plus and Nui Phao.

The price payable is linked to the monthly average of the low free market price quotations as published by the Metal Bulletin in London in US$. Standard refining and treatment charges and penalties apply to the final price.



Nui Phao Mining is selling Nui Phao project’s output of copper concentrate within Vietnam and to customers in neighboring countries.