OceanaGold inks offtake deal with Trafigura

MANILA, Philippines - Australian miner OceanaGold Corp. (OGC) has signed an offtake agreement with commodity trading firm Trafigura for the sale and purchase of copper concentrate from the Didipio Project in Nueva Vizcaya which will begin commercial operations in the first quarter of 2013. 

The OGC said the key terms of the offtake agreement are consistent with the terms under the heads of agreement, the signing of which was announced last July 16.

Trafigura is an international commodity trader that specializes in the supply and transport of concentrates. It owns and operates concentrate storage facilities in China and other countries.

Under the agreement, 100 percent of the output of the mine would be sold to Trafigura at “competitive terms and conditions, including treatment and refining charges.”

The offtake will be conducted for a minimum period of five years from the start of production at the Didipio mine.

Trafigura will manage all land and sea transportation from the mine site to smelters.

The Didipio mine is expected to produce 100,000 ounces of gold and 14,000 tons of copper per year over an estimated 16 year mine life. It will become the first mining tenement in the country to operate under Financial or Technical Assistance Agreements (FTAA).

OGC earlier said the Didipio project remains on track with construction activities now in the final stage of development.

OGC Philippines Inc. chairman Jose P. Leviste Jr. said the company is planning to list in the local bourse.