Glencore and True North Copper Forge Landmark Agreement to Boost Mt Isa Smelter

In a move that promises to revitalize the Mt Isa smelter, True North Copper (TNC) has entered into a significant offtake and toll-mining agreement with global mining giant Glencore. This partnership marks a pivotal development for the Cloncurry Copper Project (CCP), as Glencore commits to purchasing 100% of the copper produced, with provisions to toll treat up to one million tonnes of ore annually from True North's project.

TNC's Managing Director, Marty Costello, expressed enthusiasm about the collaboration, highlighting it as a critical milestone for the company. He emphasized the synergy between TNC and Glencore, noting the potential for future joint ventures. Costello also underlined the positive impact this partnership is expected to have on North West Queensland, promising job creation and opportunities for local communities and businesses.

Following the announcement on January 23, TNC's stock surged by 40%, reflecting investor confidence in the deal's significance.

Meanwhile, Glencore has been preparing for a transition, having previously announced the cessation of its copper mining operations by 2025. In response, Glencore is increasing its exploration budget to over $60 million this fiscal year and investing in projects like the Black Star Open Cut (BSOC) extension, aiming to extend the life of existing pits.

Sam Strohmayr, Glencore's Chief Operating Officer for Zinc and Copper Assets, reassured the community of Mount Isa Mines (MIM) of the company's commitment to a responsible closure process and the pursuit of new opportunities. This includes a transition to full custom smelting, with 60% of copper concentrate already sourced from external providers.

In related news, Glencore's 2023 production results align with revised guidance, showing a 5% decrease in copper output to 1.1 million tonnes. Conversely, coal output saw a 3% rise to 113.6 million tonnes, while zinc production dipped by 2% to 918,500 tonnes.

This agreement between Glencore and TNC not only secures the future of the CCP but also underscores the resilience and adaptability of the mining sector in North West Queensland. It stands as a testament to the industry's capacity to forge strategic partnerships that benefit both the companies involved and the broader community.