MELBOURNE (Reuters) - Australian miner Red River said on Tuesday that commodity trader Trafigura has won an offtake agreement for zinc and lead concentrate production from its Thalanga mine in the north of the country.
The Thalanga zinc project in Queensland state, which had been under ‘care and maintenance’ since 2012, has been ramping up since last year and is on track for production in the fourth quarter, Red River said in a statement.
The agreement, between Trafigura and Red River’s wholly-owned subsidiary Cromarty Resources, will cover the first three years of production, which is expected to include some 122,000 tonnes of zinc concentrate and 27,400 tonnes of lead concentrate.
Trafigura will provide up to $10 million in finance for working capital and other production costs if required, Red River said.
Trafigura Group CEO Jeremy Weir said in the release that the company was looking forward to working with Red River.
Reporting by Melanie Burton; Editing by Joseph Radford