“This commercial partnership gives us certainty of revenue during the crucial startup phases of Nifty’s two processing plants, removes uncertainty in sourcing a key input into cathode production, and aligns with creating and maintaining a strong Australian job base in the ultimate critical mineral, copper,” said Matt Fifield, executive chair at Cyprium.
According to Cyprium, its partnership with Glencore centres on four areas related to the restart of copper output from Nifty: cathode offtake, sulphuric acid supply, concentrate sales and technical support from Glencore Technology.
“We have been following Cyprium’s growing capabilities and are pleased to support the phased approach to redeveloping Nifty,” commented Glencore. The company will be purchasing copper products from Nifty’s two processing plants, including off-spec materials, which are often produced during the startup process.
“The cathode offtake contract covers the sale and purchase of 100 percent of cathodes produced and delivered to Port Hedland,” Cyprium also notes. The initial fixed term is extendable by mutual agreement.
The agreement also encompasses a AU$20 million prepayment / working capital facility that is subject to final agreements. Further, Glencore will consider delivering Nifty concentrate to its Mount Isa smelter.
Fifield said Cyprium will now accelerate its plans to build a new surface mine at Nifty.
“This partnership delivers transparent pricing and access to global markets with a leading partner, de-risks the restart, and allows our Cyprium team to remain intensely focused on planning and execution,” he explained.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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