Trafigura to provide $65 million to Australian copper, zinc mine

Global trading firm Trafigura has agreed to provide 100 million Australian dollars ($65.1 million) to subsidiaries of Australian mining firm Develop Global for its Woodlawn copper and zinc mine in New South Wales. The loan ensures Woodlawn is "comfortably and fully-funded through to production," aiming for first production and cash flow by mid-2025, subject to a final investment decision, Develop Global stated.

Under a five-year offtake arrangement, Trafigura will purchase all concentrates produced at Woodlawn. Develop Global, formerly Venturex Resources, acquired the Woodlawn project for $21.6 million in February 2022, marking a key investment for its expanding base metals portfolio. The mine, which produced 19.7 million tonnes of high-grade ore from 1978 to 1998, was previously closed due to low metal prices.

According to Develop Global's production restart study published in April, Woodlawn is expected to yield approximately 12,000 tonnes of copper and 36,000 tonnes of zinc annually over an estimated 10-year lifespan. The total projected payable metal over the mine's life is 80,000 tonnes of copper and 218,000 tonnes of zinc.