Glencore has come to Austral Resources’ rescue after the Queensland copper producer went into receivership in early May.
Austral’s offtake partner Glencore picked up the debt owed to Win Finance No. 359 and has assumed the role of senior secured creditor.
Austral’s directors are again in control of the business. The company maintained production levels during its receivership period, with 810 tonnes of copper cathode on-site and ready for sale.
“Operations such as haulage, crushing, and processing were uninterrupted and are ongoing,” Austral said.
“The Anthill and Mt Kelly run-of-mines currently contain 300,000 tonnes of ore with an average copper grade of 0.73 per cent, ready for processing.”
Austral is in discussions with Glencore and other creditors as it looks to restructure its business, with multiple enquiries received in the past week about potential funding solutions. The company said discussions with these potential partners were ongoing.
“This is a very positive outcome for the company,” Austral managing director and chief executive officer Dan Jauncey said. “It puts us back in a strong position to move forward.
“With copper prices and demand rising, we are entering a new era. The focus on restructuring Austral comes at an opportune time as the global market shows a robust appetite for copper.”
Copper recently topped $US10,000 per tonne on the London Metal Exchange (LME), as the market holds concerns about future copper supply.
Mining operations have been halted for geopolitical reasons, such as First Quantum Minerals’ Cobre Panama mine, while some copper mines are reaching their end of life.
Some have suggested BHP’s bid for Anglo American is a sign of a concerning copper supply pipeline.
This makes Austral’s business profile even stronger, with copper demand expected to only grow as the clean energy transition accelerates.
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