Cyprium Metals (ASX:CYM) has entered into a commercial strategic partnership with Glencore (LON:GLEN) to accelerate copper production at the Nifty Copper Complex in Western Australia.
The partnership focuses on cathode offtake, sulphuric acid supply, concentrate sales, and technical support. Glencore will purchase copper products from Nifty’s two processing plants, including off-spec materials that are frequently produced during a start-up period.
Cyprium Metals, which has a market capitalisation of $54.93 million, says the cathode offtake contract covers the sale and purchase of cathodes produced and delivered to Port Hedland, and has an initial fixed term.
The sales contract for copper concentrate will run from 2026, which is the earliest likely date that Nifty may produce concentrate.
Following today’s announcement, Cyprium’s share price has increased 20.83% to $0.043 as of 12.30 AEST.
Executive Chairman Matt Fifield says the company is continuing to execute its 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,” Fifield says.
“With this relationship now in place, Cyprium will accelerate plans for constructing a new surface mine at Nifty to produce concentrate at scale for Glencore.
“Extending today’s low TC/RCs to tomorrow’s sales is a clear commercial win for Cyprium and its shareholders. More importantly, it is also a win for both Western Australia mining jobs and for Queensland processing jobs.”
Fifield adds that the partnership delivers transparent pricing and access to global markets, and also de-risks the restart and allows the company to remain focused on planning and execution.
Both companies have agreed to a limited exclusivity period during which binding agreements are expected to be executed. The cathode offtake is subject to final binding agreements, expected shortly.
The prepayment facility, technical support, and sulphuric acid supply agreements are subject to further due diligence, finalisation and binding agreements, expected on final investment decision of Nifty’s cathode restart. Further, the concentrate sale agreement is subject to final documentation and securing board approval.
Write to Aaliyah Rogan at Mining.com.au
Images: Cyprium Metals
