Cyprium and Glencore Announce Commercial Strategic Partnership

Cyprium and Glencore Announce Commercial Strategic Partnership

Cyprium Metals Limited (ASX: CYM) (Cyprium or the Company) is pleased to advise that it has entered into a Commercial Strategic Partnership with Glencore International AG (Glencore) to accelerate the resumption of copper production from the Company’s Nifty copper complex (Nifty) in Western Australia near Port Hedland.

Highlights include:

  • Executed cathode offtake term sheet to sell cathode products to Glencore on commercial terms for a fixed term, thereafter mutually extendable
  • Offtake contract adds resilience to restart cathode production through acceptance of off-spec cathode materials at Glencore’s refinery in Townsville, Queensland
  • Cyprium to enter into sulphuric acid supply agreement with Glencore on commercial terms
  • A$20 million Prepayment / Working Capital Facility on copper production, subject to final agreements
  • Executed concentrate offtake term sheet for the sale of 100% of the copper concentrate production from the new surface mine at Nifty, as available, to Glencore International AG on commercial terms commencing immediately following commercial production for a fixed term, thereafter mutually extendable.
  • Glencore to make all reasonable efforts to consider delivering Nifty concentrates to its Mt Isa Smelter
  • Glencore Technology to provide technical support to Cyprium
  • The agreement provides for a limited period of exclusivity during which Cyprium and Glencore endeavour to execute final contracts

“Glencore is a great strategic partner for us,” said Cyprium Executive Chair Matt Fifield. “We continue to execute our plan to resume copper production at Nifty. 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.”

The strategic partnership focuses on four areas that relate to the resumption of copper production from Nifty: cathode offtake, sulphuric acid supply, concentrate sales, and technical support. Copper products from Nifty’s two processing plants will be purchased by Glencore, importantly including off-spec materials that are frequently produced during a startup period.

The cathode offtake contract covers the sale and purchase of 100% of cathodes produced and delivered to Port Hedland, and has an initial fixed term, thereafter mutually extendable. Terms and conditions are at market and reflect today’s favourable copper market dynamics.


Click here for the full ASX Release

This article includes content from Cyprium Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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