Vast Inks New Copper Offtake Agreement with Trafigura
- 15-Mar-2024 11:40 AM
- Journalist: Harold Finch
Vast Resources plc has recently concluded a fresh and exclusive offtake agreement with Trafigura Group Pte, covering the entirety of copper concentrate generated at the Baita Plai Polymetallic Mine in Romania, a property wholly owned by Vast.
This newly forged agreement represents an extension of the enduring partnership between Vast and Trafigura, a significant player in the global commodities trading and logistics domain. It follows a prior exclusive offtake pact signed with Trafigura in October 2022, which pertained to the Takob Mine located in Tajikistan.
Scheduled to remain effective until June 2025, this updated agreement is poised to supersede the existing copper concentrate offtake contract. Pricing terms conform to industry standards, with adjustments made based on the grade of the delivered material. Additionally, prices are established at a slight markdown from the cash settlement quotation, averaged over a mutually agreed-upon period for copper, silver, and gold, thus ensuring competitive pricing.
The output of copper concentrate at Baita Plai has demonstrated consistent expansion, witnessing a significant rise of 24% in dry metric tonnes from the fourth quarter of 2022 to the same period in 2023. Concurrently, initiatives are underway to expedite the development of the underground decline access ramp at Baita Plai. This strategic endeavor is anticipated to yield significant productivity enhancements by diminishing underground haulage times and facilitating swifter access to high-grade ore at greater depths. Consequently, Vast anticipates an elevation in the overall concentrate grade produced at Baita Plai, alongside a reduction in grade variability, thereby aligning with the company’s offtake objectives vis-à-vis Trafigura.
Vast Resources has fostered a robust rapport with Trafigura, a pivotal player in global commodity trading and logistics, since the early stages of 2022. Vast is pleased to unveil this latest exclusive offtake agreement pertaining to its operational asset in Romania. The terms of this agreement strategically position Vast to leverage the anticipated price surge forecasted in the coming months and extending into 2025. Projections indicate that the global supply of copper will face challenges in meeting demand, with financial analysts at UBS going as far as to assert that a copper supply shortage is inevitable. Given its operational status and ongoing ramp-up, coupled with the minimal additional capital expenditure required, Vast is well-positioned to capitalize on these market dynamics through its latest offtake accord with Trafigura.
Vast Resources plc, known as Vast Resources, operates as a diverse mining and resource development entity. With its focus spanning Southern Africa, particularly Zimbabwe, and Eastern Europe, notably Romania, the company is engaged in various exploration and development initiatives. Its commodity portfolio encompasses a range of valuable resources, including gold, copper, diamond, silver, zinc, and lead.