Sirius Resources signs three-year copper deal

THE BOURSE WHISPERER: Sirius Resources (ASX: SIR) has struck an agreement with Trafigura to sell planned Nova copper sulphide concentrate production for a period of three years from commencement of production.

Sirius described Trafigura as one of the largest physical commodities trading groups in the world, with experience in the supply and transport of concentrates.

Production of concentrate from the Nova mine is expected to commence in late 2016.

Sirius said it intends exporting this concentrate through the Western Australian port of Esperance subject to receiving community endorsement and government approval to use state-of-the-art rotating containers.

The company also mention the port of Geraldton, which already utilises this loading method, as another option.

“We are pleased to have secured an offtake agreement with Trafigura for our planned copper production for the first three years of Nova’s initial ten year mine life, and expect to have a productive and mutually beneficial relationship with Trafigura during this period,” Sirius Resources managing director Mark Bennett said in the company’s announcement to the Australian Securities Exchange

Sirius indicated it is currently advanced in negotiations with another party for the remaining half of the expected nickel concentrate production for the first three years from Nova.

The company anticipates finalising this contract by mid-2015.