Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) and mining giant Glencore (LON:GLEN) International AG have collaborated to expedite the resumption of copper production from the Nifty copper complex in Western Australia near Port Hedland.
Cyprium hopes the partnership will deliver transparent pricing and access to global markets with a leading partner, de-risking the restart of the project and enabling the company to focus on planning and execution.
“Glencore is a great strategic partner for us,” said Cyprium executive chair Matt Fifield. “We continue to execute our plan to resume copper production at Nifty.
Copper – the ultimate critical mineral
“This commercial partnership gives us certainty of revenue during the crucial startup phases of Nifty’s two processing plants, removes uncertainty in sourcing a key input into cathode production, and aligns with creating and maintaining a strong Australian job base in the ultimate critical mineral, copper.”
The collaboration will leverage Glencore’s expertise and resources to enhance Cyprium’s operational capabilities.
The partnership includes the execution of a cathode offtake term sheet, allowing Cyprium to sell cathode products to Glencore on commercial terms with an initial fixed term and potential for mutual extension.
The offtake contract ensures resilience in restarting cathode production by accepting off-spec cathode materials at Glencore’s refinery in Townsville, Queensland.
Additionally, Cyprium will enter into a sulphuric acid supply agreement with Glencore on commercial terms.
A significant aspect of the partnership is a A$20 million prepayment / working capital facility on copper production, subject to final agreements.
Cyprium and Glencore have also executed a concentrate offtake term sheet for the sale of 100% of copper concentrate production from the new surface mine at Nifty to Glencore International AG.
This will start immediately after commercial production, with a fixed term and potential for mutual extension.
Glencore is bound by the agreement to make reasonable efforts to deliver Nifty concentrates to its Mt Isa Smelter and provide technical support to Cyprium.
There is also a limited exclusivity period for Cyprium and Glencore to execute final contracts.
The cathode offtake contract covers the sale and purchase of 100% of cathodes produced and delivered to Port Hedland, with terms reflecting today’s favourable copper market dynamics.
Sale of copper concentrate
Cyprium’s sale contract for copper concentrate is expected to kick off in 2026, the earliest likely date for Nifty to produce concentrate.
The terms will be set at market price with optionality around delivery points throughout the contract’s life.
With this strategic partnership in place, Cyprium will accelerate plans for constructing a new surface mine at Nifty to produce concentrate at scale for Glencore.
Extending today’s low treatment charges and refining charges (TC/RCs) to tomorrow’s sales is a clear commercial win for Cyprium and its shareholders.
Other aspects of the commercial partnership include an option for Cyprium to purchase sulphuric acid to eliminate uncertainty in supply, technical support from Glencore Technology, and a working capital facility that allows for effective purchase point adjustments.
The Cyprium board has endorsed the partnership, with binding agreements expected shortly.