Glencore to procure copper from TNC’s Cloncurry project

True North Copper (TNC) has entered two agreements with commodities giant Glencore International for its CCP in Queensland, Australia.

The binding offtake agreement will see Glencore purchasing 100% of the copper concentrate from the CCP, while the toll-milling agreement allows for the processing of up to one million tonnes of ore per year throughout the project’s LOM.

Under the terms of the offtake agreement, the sales price for the metals in the copper concentrate will align with the market’s commercial terms, including adjustments for penalties, treatment and refining charges, and a freight credit.

The toll-milling agreement includes a market-rate tolling charge for copper ore processing in Cloncurry and a defined process for assaying, weighing, sampling and moisture determination of the produced copper concentrate.

These agreements are said to bring several key benefits to TNC and the CCP.

Notably, the concentrate will be processed at the nearby Mt Isa Smelter, which provides greater freight certainty and adds economic and logistical value.

Additionally, TNC will be entitled to a 20% Queensland State Royalty discount for all material processed through the Mt Isa Smelter, offering a financial incentive.

These agreements also provide certainty of concentrate sales for the CCP, a critical factor for the project’s success.

TNC aims to commence copper metal production at the CCP by integrating the Great Australia Mine Reserve and the Wallace North Resource into a single mining operation.

The final mine plans for the CCP are expected to be announced in early 2024, reflecting the updated reserve data.

TNC managing director Marty Costello said: “Executing binding offtake and toll-milling agreements with an industry major such as Glencore is a significant milestone for TNC and our Cloncurry Copper Project.

“Glencore has agreed to purchase 100% of the copper metal produced at CCP and we can process up to one million tonnes of ore, each year, through the nearby processing plant near Cloncurry. CCP is fully permitted and TNC is on track to soon be in production for copper with CCP located in a Tier One jurisdiction.

“TNC’s investment thesis since listing last year has only improved, and we are excited to demonstrate this in the weeks and months to come.

We aim to create as many jobs and opportunities as possible for the people, businesses and communities of north-west Queensland.”