Pact signed for offtake of output from Oman copper-gold project
Published: 01:07 PM,Jul 26,2023 | EDITED : 05:07 PM,Jul 26,2023
Al Hadeetha Resources LLC (AHRL), an Omani-Australian joint venture, has signed an exclusive offtake deal with Trafigura Pte Ltd, a market leader in the global commodities industry, covering the production of copper concentrate from the Wash-hi Majaza Copper-Gold Project in the Wilayat of Al Mudhaibi in Oman.
Under the agreement, Trafigura will purchase the full output of copper concentrate from the project for eight years from commencement of production. Pricing is based on the official London Metal Exchange cash settlement quotation for Grade A copper at the time of delivery.
The project comprises three exploration licences: (Wash-hi Majaza, Mullaq and Al Ajal); one mining licence (Wash-hi Majaza); and a copper concentrator plant (under construction) with the capacity to process one million tonnes of copper ore per annum when completed.
The project is expected to be a game-changer in the new era of copper mines being developed in the Sultanate of Oman in response to the rapidly growing world demand for sustainable energy.
Following the signing of the offtake agreement, Atmavireshwar Sthapak, Managing Director of Alara and AHRL said: “We are very excited that Trafigura and Al Hadeetha Resources are partnering to transform the mining landscape in the Sultanate of Oman. We are highly indebted to the Ministry of Energy and Minerals in Oman and our other stakeholders for their support in helping us achieve this major milestone.”
Ross Ridgway, Head of Copper for Trafigura, said: “There is very strong demand for copper due to its role in the energy transition. Since the fourth millennium BC, copper has been produced in this region. We are supporting the Wash-hi Majaza project as Oman re-enters the world stage as a supplier of this critical metal.”
In conjunction with the offtake agreement, Australian joint venture partner Alara Resources also obtained a $3.45 million finance facility from Trafigura. The principal purpose of the facility is to enable Alara to further capitalise AHRL, which will in turn use the funds for completion of project infrastructure construction.
Under the agreement, Trafigura will purchase the full output of copper concentrate from the project for eight years from commencement of production. Pricing is based on the official London Metal Exchange cash settlement quotation for Grade A copper at the time of delivery.
The project comprises three exploration licences: (Wash-hi Majaza, Mullaq and Al Ajal); one mining licence (Wash-hi Majaza); and a copper concentrator plant (under construction) with the capacity to process one million tonnes of copper ore per annum when completed.
The project is expected to be a game-changer in the new era of copper mines being developed in the Sultanate of Oman in response to the rapidly growing world demand for sustainable energy.
Following the signing of the offtake agreement, Atmavireshwar Sthapak, Managing Director of Alara and AHRL said: “We are very excited that Trafigura and Al Hadeetha Resources are partnering to transform the mining landscape in the Sultanate of Oman. We are highly indebted to the Ministry of Energy and Minerals in Oman and our other stakeholders for their support in helping us achieve this major milestone.”
Ross Ridgway, Head of Copper for Trafigura, said: “There is very strong demand for copper due to its role in the energy transition. Since the fourth millennium BC, copper has been produced in this region. We are supporting the Wash-hi Majaza project as Oman re-enters the world stage as a supplier of this critical metal.”
In conjunction with the offtake agreement, Australian joint venture partner Alara Resources also obtained a $3.45 million finance facility from Trafigura. The principal purpose of the facility is to enable Alara to further capitalise AHRL, which will in turn use the funds for completion of project infrastructure construction.