KGL Resources has inked a 5 year binding offtake agreement with one of the world’s largest globally diversified natural resource companies, Glencore for 100% copper concentrate from its Jervois Mine in the Northern Territory.
According to the official announcement, the copper concentrate will be delivered by KGL to Glencore’s Mount Isa copper smelter.
“The execution of the binding offtake agreement with Glencore is a major milestone for KGL and the Jervois Project. It brings certainty to the sales program and Glencore is a well-credentialed and bankable counterparty. Having benchmarked pricing in this strong commodity environment is comforting,” said Managing Director, Simon Finnis.
“This agreement is a key component of KGL’s plans to procure funding for the development of Jervois. Work is continuing on the Feasibility Study which will incorporate the terms of this agreement, as well as the new resource data from the Bellbird, Reward and Rockface deposits. We expect this will result in favourable annual production and mine life outcomes.”
According to Mr Finnis, the deal reaffirms the value of the company’s project.
“It is also very satisfying to us to be selling our material within Australia, which obviously assists with the Australian economy, supports the local area, and de-risks our project by eliminating the need for rail and ocean freight transportation of our finished product. We should also not discount the benefits this brings to our environment by minimising transportation and therefore emissions,” Mr Finnis said.
KGL acquired the Jervois Base Metal Project in 2011 and has since then successfully defined a current JORC Resource of 20.97 Million tonnes at 2.03% Copper and 31.9g/t Silver.
