Glencore has entered into an agreement with Carnaby Resources, signalling the major shows no signs of slowing down in Queensland.
In acquiring the Trekelano copper project, Carnaby entered into a binding agreement with Glencore for tolling and offtake of 100 per cent of the sulphide ore and concentrate from the project.
The partnership provides Carnaby a “start-up processing solution” at Trekelano and will see Glencore support another near-term copper operation through its initial production strides.
Glencore has also supported Austral Resources and True North Copper with similar partnerships, while also helping the recapitalisation of both companies after they both went under.
The major took on the debt Austral owed to investment manager Wingate and a month later helped Austral restructure its debt with Thiess.
Glencore holds an offtake partnership with Austral, whereby it can acquire up to 40,000 tonnes of copper cathode from the Anthill copper mine in Queensland.
Earlier this week, True North raised $50 million through a recapitalisation, with Glencore taking on a 9.9 per cent stake in the company. The major also holds a tolling and offtake agreement with True North.
These efforts show that despite Glencore announcing in October 2023 that it would be closing its Mt Isa copper operations, the major shows no signs of slowing down in the region, helping emerging companies realise their dream of becoming copper producers.
The scope of Glencore’s partnerships should also be noted, with the company committing to 100 per cent of the offtake from Carnaby’s Trekelano project and True North’s Cloncurry project, meaning all the copper from these mines will head in one direction once produced.
Glencore obviously sees the potential of the North West Minerals Province and hopefully other investors recognise the opportunities as well.
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