OGC Announces Offtake HOA for Didipio Copper Concentrate with Trafigura
Tuesday, 10 July 2012
(MELBOURNE) OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) is pleased to announce that it has signed a Heads of Agreement with Trafigura, in relation to the sale and purchase of copper concentrate from the Didipio Project in Luzon, northern Philippines. Trafigura is a leading international commodity trader that specialises in the supply and transport of concentrates, and owns and operates concentrate storage facilities in China and worldwide that support the company’s trading activity.
The key terms of the Heads of Agreement are:
• The Company will sell 100% of the Didipio copper / gold concentrate production to Trafigura at competitive terms and conditions, including treatment and refining charges
• The offtake will be for a minimum period of five years from the start of production at Didipio
• Trafigura will take delivery of copper / gold concentrate Free Carrier Didipio mine site, and will manage all land and sea transportation from the mine site to smelters
The parties expect to finalise a binding contract for the offtake arrangements in the near future.
Mick Wilkes, Managing Director and CEO of OceanaGold commented: “The signing of the Heads of Agreement is another significant milestone achieved for the Didipio Project which is expected to commence commissioning in the fourth quarter of 2012. The copper / gold concentrate produced from Didipio will be high quality and we are very pleased with the commercially competitive terms that we have agreed with Trafigura. We look forward to having Trafigura as a partner for the Didipio operation and a successful long term relationship with them.”
Trafigura Board member Jeremy Weir said: “We are very pleased to be working with OceanaGold as an offtake partner on the world class Didipio Project. This highlights Trafigura’s ability to bring commercial value to our partners, and our capability in providing inland logistics and infrastructure as part of the value chain. The concentrate will be delivered to our copper smelting clients throughout Asia. This demonstrates our commitment to the Philippines and across South East Asia, and we will continue to support the mining sector’s growth in the region.”