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BHP's cobalt tolling deal at Nikkelverk will end this year

August 18, 2009 - 15:39 GMT Location: London

KEYWORDS: cobalt , nikkelverk , xstrata , bhp billiton , alex harrison , nickel , metal

Xstrata's toll refining of cobalt-nickel sulphide from BHP Billiton at Nikkelverk in Norway looks set to end this year, according to market sources

“The tolling deal is ending in the next couple of months,” one market source said, dismissing suggestions that talk of the end of the tolling deal was speculation. “As far as we’re concerned this is gospel. It’s not just the rumour that goes around [from time to time],” he said, adding that he believes Xstrata will continue to refine the material but will buy it rather than toll it. BHP and Xstrata’s deal is for BHP to ship sulphide that is roughly equal parts cobalt and nickel from its Kwinana nickel refinery for conversion into nickel and Falconbridge-certified cobalt at Nikkelverk. “Xstrata pays BHP a formula price...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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