KGL strikes copper deal with Glencore

PERTH – ASX-listed KGL Resources has inked a binding offtake agreement with mining major Glencore over all of the copper concentrate to be produced at its Jervois mine, in the Northern Territory.

The evergreen agreement would have a minimum term of five years from the start of commercial production with sale price for the copper concentrate to be volume-based and calculated with reference to the LME cash settlement price for copper, with silver and gold credits.

“The execution of the binding offtake agreement with Glencore is a major milestone for KGL and the Jervois project. It brings certainty to the sales programme and Glencore is a well-credentialed and bankable counterparty,” said KGL MD Simon Finniss.

“Having benchmarked pricing in this strong commodity price environment is comforting. This agreement is a key component of KGL’s plans to procure funding for the development of Jervois.”

The current schedule for the Jervois project would be confirmed as part of the feasibility study process, and a final investment decision is expected later this year. The contract with Glencore was conditional upon finance for the project being secured no later than the end of September 2025, and commercial production being no later than December 2025.

“Work is continuing into the feasibility study which will incorporate the terms of this agreement, as well as the new resource data from the Bellbird, Reward and Rockface deposits. We expect this will result in favourable annual production and mine life outcomes,” said Finnis.