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Glencore brings True North into the fold

Glencore will toll treat up to one million tonnes of copper per year from True North Copper’s (TNC) Cloncurry project in Queensland.

This enables the major miner to have access to 100 per cent of copper concentrate from the Cloncurry project.

Glencore and True North signed a binding offtake and toll-milling agreement this week, providing True North certainty of concentrate sales from its flagship asset.

“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,” True North managing director Marty Costello said.

“Glencore has agreed to purchase 100 per cent of the copper metal produced at CCP (Cloncurry copper project) and we can process up to one million tonnes of ore, each year, through the nearby processing plant near Cloncurry.”

Costello said True North was in a strong position to reach production.

“CCP is fully permitted and TNC is on track to soon be in production for copper,” he said. “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.”

True North’s concentrate will be processed at the Mt Isa smelter, located about 120km away. The offtake sales price will be in line with market prices for copper concentrate, including adjustments for penalties, treatment and refining charges.

In October 2023, Glencore announced it would be closing its Mount Isa mine in 2025, with the accompanying smelter to run until 2030.

Glencore then announced in January that the smelter would transition to full custom smelting, acknowledging that 60 per cent of the concentrate already comes from external sources.

This is where True North can enter the equation.

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