Timminco signs long-term silicon metal supply deal

Feb. 19, 2010
Canada's Timminco Ltd. said on Feb.18 it has secured contracts to supply about 90,000 tonnes of silicon metal to a long-standing, but unnamed, customer over the next five years, sending its stock higher.
Timminco subsidiary Becancour Silicon Ltd will supply set base quantities of silicon metal between 2010 and 2014, subject to volume adjustments by the customer. Volume commitments can also be suspended for any year after 2010 if both parties cannot settle on pricing.
The contract confirms and extends a commitment made in the fourth quarter of 2009, which led to the restart of Becancour's third silicon metal electric arc furnace and a return to full output in October 2009.
The company curtailed production and laid off staff in March 2009 on slack demand as customers terminated contracts.
Becancour said the deal demonstrates growing demand for silicon metal from the company's traditional chemical, aluminum and polysilicon industry customers.
"We are currently producing silicon metal at capacity, operating all three of our silicon metal furnaces, to satisfy the increased demand," said Becancour Chief Executive Rene Boisvert.
"We intend to satisfy our commitments under these contracts through our existing production capacity at Becancour."