Timminco Limited
TSX : TIM

Timminco Limited

March 26, 2008 23:59 ET

Timminco Announces Solar Grade Silicon Supply Agreement with Q-Cells AG

TORONTO, ONTARIO--(Marketwire - March 26, 2008) - Timminco Limited ("Timminco") (TSX:TIM) today announced that its wholly-owned subsidiary, Becancour Silicon Inc. ("BSI"), has entered into an agreement to supply solar grade silicon to Q-Cells AG ("Q-Cells") (FRANKFURT:QCE). Q-Cells is the world's largest manufacturer of solar cells.

Under the terms of the agreement, BSI will supply Q-Cells with contractually fixed supplies of 410 metric tons (mt) in 2008 and 3,000 mt in 2009 at fixed prices. The deliveries start immediately. Until the end of July 2008 the partners will negotiate a further contract on the delivery of up to 6,000 mt per year in the years 2010 to 2013. The price for these possible further supplies will be negotiated contingent upon market conditions. With this contract Q-Cells will become BSI's largest customer for solar grade silicon in 2009.

This agreement represents BSI's fifth long-term commercial contract for the sale of high purity silicon. In the event that Q-Cells and BSI agree to extend the contract to 6,000 mt per year for the period 2010 to 2013, this contract would raise the committed deliveries of BSI's solar grade silicon business to 12,000 mt per year beginning in 2010. On February 22, 2008 Timminco announced the expansion of BSI's solar grade silicon capacity to 14,400 mt per year, with the incremental capacity fully on stream by the end of the second quarter of 2009.

"BSI has developed a proprietary process which enables it to produce solar grade silicon by purifying metallurgical silicon. Q-Cells has tested unblended material from BSI extensively and has obtained very good results in cell production", said Mr. Anton Milner, CEO of Q-Cells.

"This contract represents a giant step for our solar grade silicon business. Q-Cells is a leader in the photovoltaic industry and their endorsement of our material through this supply agreement is further evidence of the paradigm shift we are creating in the solar grade silicon market." said Mr. Rene Boisvert, President and CEO of BSI.

ABOUT TIMMINCO

Timminco is a leader in the production and marketing of lightweight metals, specializing in solar grade silicon for the rapidly growing solar photovoltaic energy industry. Using its proprietary technology, Timminco processes metallurgical grade silicon into low cost solar grade silicon for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.

CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation, concerning Timminco's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". In this news release, such information includes statements regarding agreements and commitments to supply solar grade silicon, and production capacity expansion for solar grade silicon. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Timminco operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Timminco cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Timminco's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to, expansion of the solar grade silicon business generally, delays or cost overruns in the construction of new manufacturing facilities and installing and commissioning new equipment, commitments under existing and prospective long-term contracts for solar grade silicon, maintaining and further improving the purity of solar grade silicon, protection of intellectual property rights, silicon metal and magnesium metal prices, raw materials pricing and availability, and competition. These and other factors are discussed in greater detail in Timminco's most recent Management's Discussion and Analysis. Although Timminco has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this news release is made as of the date of this news release and Timminco disclaims any intention or obligation to update or revise such information, except as required by applicable law.

Contact Information

  • Timminco Limited
    Robert J. Dietrich
    Executive Vice President - Finance and CFO
    (416) 364-5171
    (416) 364-3451 (FAX)
    Email: rdietrich@timminco.com
    or
    Becancour Silicon Inc.
    Rene Boisvert
    President and CEO
    (819) 294-6000
    (819) 294-9001 (FAX)
    Email: rboisvert@silbec.com