New deal may pave way for $100m copper projectadmin
A mining company says a new sales agreement to sell its product to Asia should allow a $100 million copper project to proceed.
Copperco says under the deal with resources giant Glencore, 19,000 tonnes of copper per year will be exported to Asia from the Lady Annie mine being developed near Cloncurry in north-west Queensland.
Copperco’s Brian Rear says three mining leases have also been granted on the site, but the deal means mining should begin in March.
“It’s a requirement normally for small companies like ours – ahead of closing and drawing down project finance – to have this type of off-take agreement with a counter party that the bank finds acceptable,” he said.
“Glencore’s [offer is] certainly acceptable to our banker.”