Glencore executes copper off-take agreement with Red River

Red River Resources has secured an off-take agreement with Glencore for copper production from the Thalanga zinc project in Queensland.

The off-take agreement will run for three years from the restart of commercial production at Thalanga, with Glencore to take delivery of the copper at the mine gate.

Melbourne-based Red River is working towards relaunching production from the site in the fourth quarter of this year.

Red River managing director Mel Palancian described the off-take agreement as a key milestone for the company.

“Being able to deliver concentrate at the mine gate to Glencore is very advantageous to both companies,” Palancian said.

“This represents the culmination of a highly competitive copper concentrate off-take process that commenced at the end of 2016.”

According to Palancian, Red River is also close to finalising off-take agreements for the lead and zinc streams.

The Thalanga operations were placed on care and maintenance by Kagara in 2012 before being acquired by Red River in 2014.

Red River released a restart study for the project in November 2015, which outlined $17.2 million pre-production capital costs and a six-month timeline to production.

The study forecast annual average production of 21,400 tonnes of zinc, 3600 tonnes of copper, 5000 tonnes of lead, 2000 ounces of gold and 370,000 ounces of silver over a five-year mine life.

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