Develop Global Secures Offtake Agreement and Loan with Trafigura for Woodlawn Mine Restart

Trafigura

Develop Global has finalized a five-year offtake deal and a $63.9 million loan facility with Trafigura, paving the way for the reopening of the Woodlawn copper and zinc mine in early 2025.

A Major Step for Woodlawn Mine

Australian miner Develop Global and commodity trading giant Trafigura have formalized the terms of a pivotal agreement to support the reopening of the long-shuttered Woodlawn copper and zinc mine in New South Wales, Australia. The mine, which has been inactive for nearly three decades, is slated to restart ore extraction in early 2025, with the first concentrates expected by Q2 2025.

The agreement includes:

• A five-year offtake deal, ensuring Trafigura will purchase all minerals processed at Woodlawn.
• A commitment by Develop to produce at least 650,000 tonnes of zinc, copper, and lead concentrates within five years.
• A A$100 million ($63.9 million) loan facility provided by Trafigura, with repayment options via offtake payments or quarterly installments.

Develop Global previously assured investors in August 2024 that the Woodlawn project was "fully-funded through to production," and this deal solidifies its financial foundation.

Strengthening Supply Amid Global Copper Challenges

The deal comes at a critical time as the global copper supply chain faces significant challenges:

• Ecuador’s copper concentrate exports are projected to drop by 20% in 2024 due to production constraints.
• European producer Aurubis, the region's largest copper recycler, has announced reduced output for the 2023–2024 fiscal year.

Woodlawn's reopening will help alleviate some of the pressure on global copper and zinc markets, supplying critical materials for construction, manufacturing, and the renewable energy sector.

A Boost for Regional Mining

The reopening of the Woodlawn Mine marks a milestone for Australia’s mining industry, contributing to the local economy while ensuring a steady supply of base metals. With on-site facilities capable of processing ore into high-quality concentrates, Woodlawn is well-positioned to become a key supplier in the region. The partnership with Trafigura underscores the importance of strategic collaborations in bringing dormant mines back online.