OceanaGold has signed an offtake agreement which will see Geneva-based commodity trader Trafigura buy all the copper and gold concentrate output from its $350 million Didipio mine in the Philippines for the next five years.
Under the terms of the agreement, Trafigura will take delivery of the copper/gold concentrate at the Didipio mine site and manage all land and sea transportation from the mine site to smelters in Asia.
Didipio is expected to produce 100,000 ounces of gold and 12,000 tonnes of copper a year, over an estimated 16-year life-of-mine. The project is in northern Luzon and commissioning is expected to begin before the end of the year.
Trafigura is a leading international commodity trader that specializes in the supply and transport of concentrates, and owns and operates concentrate storage facilities in China and worldwide that support the company’s trading activity.
OceanaGold’s managing director Mick Wilkes says, “This is another significant milestone for Didipio. The copper-gold concentrate produced will be high quality and we are very pleased with the commercially competitive terms that we have agreed with Trafigura. We look forward to having Trafigura as a partner for the Didipio operation and a successful long-term relationship with them.”
Trafigura Board member Jeremy Weir says the agreement highlights Trafigura’s ability to bring commercial value to its partners, and the company’s capability in providing inland logistics and infrastructure as part of the value chain. “The concentrate will be delivered to our copper smelting clients throughout Asia. This demonstrates our commitment to the Philippines and across South East Asia, and we will continue to support the mining sector’s growth in the region.”
Progress at the site is continuing with 1600 workers engaged. Grinding mills and high and low voltage switchrooms are installed, the first six power generating units are being commissioned this month, the initial lift of the tailings storage facility is complete, all major mine roads are complete and all senior operations staff are recruited.