Consolidated Zinc Limited (ASX: CZL) has confirmed that Industrias Penoles S.A. de C.V. has exercised its option to purchase 100% of the zinc concentrates produced by Minera Latin American Zinc SAPI de CV (MLAZ) at Plomosas in Mexico.
The agreement covers the period January 1, 2022 to December 31, 2022. As part of the zinc concentrate offtake agreement, Penoles has an additional one-year option to extend the zinc concentrate purchases to the end of December 2023.
Zinc Treatment Charges
The zinc concentrate sold to Penoles is processed at Penoles’ Met-Mex smelter located in Torreon, Mexico, with the zinc treatment charges linked to the annual zinc treatment charge benchmark, which is agreed annually during the first quarter of each year between the major zinc miners and smelters.
The Met-Mex smelter is located approximately 600km from Plomosas which delivers significant savings in transportation costs in comparison to other zinc smelters located further from Plomosas or in export markets.
Zinc concentrates produced from Plomosas Mine are high-grade, with very low levels of deleterious impurities, being within all deleterious impurity limits minimises treatment charges.
Industrias Penoles is a major Latin-American mining company, listed on the Mexican Stock Exchange, and one of the world’s leading refiners of zinc and the largest global refiner of silver.
