Extensive collaboration with Global Tungsten & Powders (GTP) for the development of Wolfram Camp Mine
Heidelberg. Deutsche Rohstoff AG is pleased to advise that they have recently signed an off-take agreement for all tungsten concentrates, which will be produced in the Wolfram Camp Mine in Queensland, Australia from the beginning of 2012. The purchaser is Global Tungsten & Powders Corp. (www.globaltungsten.com) based in Towanda, USA, which is part of the Plansee Group (www.plansee.com) in Reutte, Austria.
GTP is one of the largest tungsten processors outside of China and together with DRAG envisage a long and successful future after the signing of a 5 year agreement.
In line with the contract, the produced tungsten concentrate will be delivered to the chemical treatment plant of Global Tungsten in Towanda, Pennsylvania, USA. Logistics for all concentrates will be undertaken by the experienced and professional traders of concentrate – Ocean Partners (www.oceanpartners.com). Concentrate prices are based on the European market prices for ammonium paratungstate (European APT).
To fund the capital ramp-up phase of the Wolfram Camp Mine, GTP granted Deutsche Rohstoff AG a loan of USD 6.15 million with exceptional terms and low interest rates.
Dr. Titus Gebel, Chairman and CEO of Deutsche Rohstoff AG, said: “We are pleased that with Global Tungsten as one of the major international tungsten processors is interested in a long-term collaboration with us. The extraordinary professional collaboration and financial support, which is provided to us by GTP, underlines the willingness of both sides to build a successful partnership. “
Dr. Andreas Lackner, CEO of Global Tungsten, commented: “The quality of the Wolfram Camp project and the professional approach of DRAG convinced us. The agreement is an important component in our strategy, to cover the overall demand for tungsten concentrates outside of China. We look forward to strengthening our relationship on additional tungsten projects together with DRAG. “
Australian JORC Standard tungsten resource totals 1.42 million tons of ore with average grades of 0.60% WO3 (tungsten trioxide) and 0.12% Mo (molybdenum). Within this resource a mineable reserve of 730,000 tons is scheduled for mine production from the initial open pit with an estimated head grade of 0.77% WO3 and 0.056% Mo. Based on the current reserves, this provides a mine life through until 2015 and with an extensive portfolio of tenements in the area, the company believes that through dedicated exploration, the resource inventory will continue to grow.
Assuming today’s prices, concentrate sales amount to approximately AUD 124 million in the next four years. The current price of tungsten and molybdenum concentrates are 42% above the level at which production is profitable at Wolfram Camp.
The market for tungsten is characterized by a sharp rise in prices in recent months. Experts expect consistently high prices over the next few years. Tungsten is one of the metals, which is, as well as rare earths or tin, categorized as strategically important by the German Federal Government and the EU Commission. Nearly 80% of the annual global production of about 61,000 tons (2010, pure tungsten metal content) comes from China.
As for the other metals mentioned, there are export quotas from China and a prohibition for foreign companies to explore or produce tungsten in China. Because of its hardness and the extremely high melting point of 3.422 degrees Celsius, tungsten is processed in the hardening of tools, the manufacturing of machine tools, as an alloying metal in the steel industry, for incandescent lamps, in the catalyst preparation as well as numerous other industrial applications.
Heidelberg, 27 October 2011
Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company’s focus is placed on gold, oil & gas and so called high tech metals such as tin, tungsten, and rare earth metals. All projects are located in countries marked by political stability, the core area being Germany. The business concept is based on redeveloping deposits which have been well explored in the past. A first production started in Georgetown/Australia in January 2011. For more information please visit www.rohstoff.de.
Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24, 69117 Heidelberg
Tel. (06221) 87 100-0
Fax (06221) 87 100-22
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