In a significant move for the mining industry, Australian resources firm Cyprium Metals has entered into a strategic partnership with global mining and trading giant Glencore. This collaboration aims to expedite the resumption of copper production at Cyprium's Nifty copper complex, located near Port Hedland in Western Australia.
The partnership encompasses several key areas: the offtake of copper cathodes, supply of sulphuric acid, sales of concentrate, and provision of technical assistance during the initial phases of restarting Nifty's two processing plants. Matt Fifield, Cyprium's executive chair, emphasized the comprehensive nature of the agreement, which is designed to ensure a smooth and efficient ramp-up of operations.
A cornerstone of the deal is the cathode offtake contract, wherein Glencore will purchase 100% of the copper cathode output from Nifty, starting from 2026. This agreement also includes off-specification materials produced during the start-up period. Additionally, the partnership features a $20 million pre-payment/working capital facility to support copper production, pending final agreements.
The collaboration between Cyprium and Glencore has been in the making for two years, reflecting a deepening of ties between the two companies. Cyprium acquired the Nifty mine from Metals X in early 2021 for A$60 million ($44 million). Discovered in 1981 and brought into production in 1993, Nifty produced 714,908 tonnes of copper between 1993 and 2019, when it was placed under care and maintenance.
The renewed focus on Nifty comes when the global demand for copper is surging, driven by its critical role in electric vehicles and renewable energy infrastructure. This partnership is poised to position Nifty as a key player in meeting the increasing demand for copper.
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