PERTH (miningweekly.com) – The share price of ASX-listed CuDeco increased by more than 15% on Tuesday on news that the company had entered into an ore-supply agreement with major Glencore.
Under the terms of the agreement, CuDeco would supply an initial 20 000 t of primary sulphide ore from its Rocklands project for toll treatment at the Ernest Henry processing plant, in Queensland.
The trial shipment would evaluate the suitability of the Rocklands primary ore for treatment at Ernest Henry, and the general handling and processing characteristics in a large-scale processing situation.
Glencore has agreed to purchase the copper concentrate produced from the ore supply under an offtake agreement.
At the completion of the trial treatment, the parties would consider a long-term supply agreement.
CuDeco was in the final stages of constructing its three-million-tonne-a-year mineral processing facility at Rocklands. The company was currently mining about 30 000 t/d of ore.
The miner told its shareholders that any future agreements for ore supply and concentrate purchase would be based on increased mining for supply, in addition to the three-million tonnes a year to be processed at the Rocklands mineral processing facility.
Delivery of ore to the Ernest Henry mine site would start next week.
CuDeco shares were trading at a high of A$1.60 a share on Tuesday, up from a low of A$1.39 a share.