Sinosteel Australia managing director Xiaofei Cui told MiningNews.net the company was in discussions with four “end of users” and had signed exclusive agreements with two copper and zinc smelters to supply concentrate from Australian sources.

The two smelters have a combined total annual output of 160,000 tonnes of copper metal and 300,000t of zinc metal.

Cui said the two smelters currently procure their raw materials mainly from the spot market but with capacity expansions being planned, they were aiming to secure a stable supply of concentrate feedstock.

On the supply front, Cui said the company was in discussions with zinc producer CBH Resources in regards to securing zinc and copper concentrate.

“CBH Resources are preparing an information memorandum, once that is ready we’ll talk a deal with them,” he said.

However, CBH managing director Bob Besley told MNn the company was in preliminary discussions with a whole range of people but nothing was firm at this stage.

Besley said any possible off-take agreements would involve the Sulphur Springs copper-zinc-silver development in Western Australia (currently the focus of feasibility studies) because all of the production out of its mainstay Endeavour mine in New South Wales was “pretty well tied up”

Sulphur Springs is being planned as a 1.25 million tonne per annum mining and processing operation producing a 75,000tpa zinc concentrate (grading 53% zinc) and a 65,000tpa copper concentrate (grading 25% copper).

On the nickel front, Cui said the company was in early discussions in regards to supplying Anshan Iron & Steel, China’s second-largest stainless steel producer, with nickel concentrate from Australian sources.

Cui said he had met with Jubilee Mines executive chairman Kerry Harmanis two weeks ago but said “it is very initial stages”

Sinosteel has been busy on the WA iron ore front, signing memorandums of understanding with Jupiter Mines and Cape Lambert Iron Ore earlier this year, and forming a JV with iron ore producer Midwest last October.