Trafigura to provide A$100m for Australia copper/zinc mine
Australia’s Develop Global has agreed a A$100-million prepayment/loan facility and offtake agreement with global commodities trader Trafigura for the Woodlawn copper and zinc mine in New South Wales.
The agreement paves the way for a final investment decision and puts the Woodlawn mine on track for production and cashflow by the middle of next year.
“The competitive prepayment/loan facility and offtake agreements are a game-changer for Develop,” says MD Bill Beament.
“The terms of the prepayment/loan facility are extremely competitive, with a low interest rate and significantly flexibility. This represents a strong vote of confidence in the quality of the mine, its management and the A$400-million of equity capital that has been invested in the mine by Develop and the prior owner,” said Beament.
The offtake agreement underpins Woodlawn’s future, with improved terms relative to those assumed in the restart study released in early April.
Beament noted that the benefits of the prepayment/loan facility and offtake arrangement for Develop could be seen in the increase in the project’s net present value from A$658-million to A$728-million.
In terms of the agreement, Trafigura would provide $65-million, or the equivalent in Australian dollars, in a prepayment/loan facility. Combined with Develop’s existing cash reserves of A$41-million and a profitable mining services division, Woodlawn is now “comfortably and fully funded through to production”.
The mine plan estimates that Woodlawn will produce an average 12 000 t/y of copper and 36 000 t/y of zinc metal in payable streams over an estimated ten-year mine life, with life-of-mine payable metal of 80 000 t copper and 218 000 t zinc.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...
VISIT SHOWROOM
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
