Cyprium and Glencore Join Forces to Restart Copper Production at Nifty
Copper-focused Cyprium Metals( ASX:CYM,OTC Pink:CYPMF) announced a commercial strategic partnership with global commodities giant Glencore (LSE:GLEN,OTC Pink:GLCNF) on July 26.
In a press release, Cyprium said the deal is geared at accelerating the resumption of production from its Nifty copper complex, located in Western Australia’s Pilbara region. Nifty was placed on care and maintenance in November 2019.
“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.
Cyprium announced plans to acquire Nifty in February 2021. An updated resource estimate released in March shows that the property holds 1 million tonnes of contained copper in the measured and indicated categories.
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.
The earliest projection for concentrate production at Nifty is 2026. According to a scoping study released by Cyprium in May, the projected mine life at Nifty stands at 17 years.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.