Orbite (ORT.to, EORBF) Announces Offtake Agreement with Glencore
MONTREAL, QUEBEC--(Marketwired - Jun 17, 2013) - Orbite Aluminae Inc. (ORT.TO)(EORBF) ("Orbite" or the "Corporation") today announced an offtake agreement with Glencore International AG ("Glencore"), a subsidiary of Glencore Xstrata plc ("Glencore Xstrata"), for the purchase of smelter-grade alumina from the Corporation's proposed smelter-grade alumina (SGA) plant in Quebec, Canada.
The Agreement provides for the purchase by Glencore of 100% of the smelter-grade alumina, from the Corporation's first proposed SGA plant in Quebec, Canada, for an initial term of 10 years from the commencement of commercial production. The Agreement also foresees that Orbite and Glencore will undertake negotiations relating to Glencore's potential financial participation in the ownership and operation of the Corporation's proposed SGA plant in Quebec. The Parties have not set any timetable for the commencement or conclusion of these negotiations. All other terms of the Agreement, including pricing and renewal rights, are confidential for competitive reasons.
"We are definitely pleased to be executing our first offtake agreement with a company of Glencore's stature and experience in the alumina industry," said Glenn Kelly, Orbite's Chief Operating Officer.
Glencore Xstrata is one of the world's largest global diversified natural resource companies with pro forma revenues of $236 billion in 2012. Glencore Xstrata's industrial and marketing activities are supported by a global network of more than 90 offices located in more than 50 countries, with diversified operations comprised of more than 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities.
The Metals and Minerals division is focused on alumina/aluminum, copper, nickel, zinc/lead, alloys, and iron ore, with interests in both controlled and non-controlled industrial assets that include mining, smelting, refining and warehousing operations.
