Australian Silicon Limited (ASO) today announced execution of a silicon metal off-take agreement with ThyssenKrupp Metallurgie GMBH. The agreement is a major milestone for ASO and will underpin the project finance package as the company moves closer to the development of a silicon metal industry on the east coast of Australia.

Australian Silicon Sales Pty Ltd a wholly owned subsidiary of ASO has entered into a “take and pay” arrangement with ThyssenKrupp Metallurgie GMBH a wholly owned subsidiary of ThyssenKrupp Materials AG, a division of ThyssenKrupp AG. ThyssenKrupp AG is a major German industrial and diversified Group, with total sales in excess of €38 billion and total assets of €35 billion. Under the agreement ThyssenKrupp Metallurgie GMBH have agreed to take 70% of the design project output of chemical and/or aluminium grade silicon metal to be produced from the Lithgow Silicon Smelter. The agreement is an exclusive arrangement between the parties with the ability to increase off-take tonnage by mutual agreement.
The initial term of the agreement is for seven years which can be extended for a further five by agreement. ThyssenKrupp Metallurgie GMBH have the right to market and sell Australian Silicon product in specified territories predominantly throughout Europe and the Middle East.

ThyssenKrupp Metallurgie GMBH will be paid a fee based on the net selling price of the silicon metal and ASO will be paid 95% on presentation of shipping documentation.

This is a very significant step forward for the Australian Silicon Project with the support of a major international group committing to the development of the Australian Silicon Project.