Alara Resources Signs Exclusive Offtake Agreement for Oman Copper-Gold Project Alara Resources Limited

Alara Resources Signs Exclusive Offtake Agreement for Oman Copper-Gold Project

Perth-based mining company Alara Resources Limited (ASX: AUQ) has announced the signing of an exclusive offtake agreement for its Wash-hi Majaza copper-gold project in Oman. The agreement, signed with Trafigura, a global leader in commodities trading, will see Trafigura purchase the full output of copper concentrate from the project for eight years from the start of production.

Game-Changing Project in Oman

The Wash-hi Majaza project, located in the Al Sharqiyah Governorate of Oman, is expected to be a game-changer in the copper mining industry. The project encompasses three exploration licenses, one mining license, and a copper concentrator plant that is currently under construction. Once completed, the plant will have the capacity to process one million tonnes of copper ore per year.

Meeting Global Demand for Sustainable Energy

The signing of this offtake agreement marks a significant milestone for Alara Resources and its Omani JV Company, Al Hadeetha Resources LLC. With the growing demand for sustainable energy, copper has become a critical metal in the energy transition.

Story Continues.. after this ad because we need some dollarydoos

The Wash-hi Majaza project positions Oman as a key player in the global copper supply chain.

Excitement and Gratitude

Atmavireshwar Sthapak, Managing Director of Alara and AHRL, expressed his excitement about the partnership with Trafigura and the potential impact on the mining landscape in Oman. He thanked the Ministry of Energy in Oman and other stakeholders for their support in achieving this major milestone.

Supporting Sustainable Energy Transition

Ross Ridgway, Head of Copper for Trafigura, highlighted the strong demand for copper and its role in the energy transition. He emphasised the historical significance of copper production in the region, dating back to the fourth millennium BC. Trafigura's support for the Wash-hi Majaza project further solidifies Oman's position as a critical supplier of copper.

Terms of the Offtake Agreement

The offtake agreement spans eight years and two months from the commencement of copper concentrate production at the Wash-hi Majaza project. Trafigura will purchase the entire copper concentrate production during this period. Pricing for the copper concentrate will be based on the official London Metal Exchange cash settlement quotation for Grade A copper at the time of delivery.

Alara Resources and Trafigura's partnership in the Wash-hi Majaza project marks an important step forward for both companies and the copper mining industry in Oman. The project's contribution to meeting global demand for sustainable energy solidifies its significance in the ever-evolving world of mining and commodities.

Promote your business on our growing investor platform: Advertise With Us

Reply ... Share

Lykeshares 1y

#ASX:ASN Is Anson Resources’ US$330M Financing Deal the Key to Unlocking Utah’s Lithium Potential?

Reply

Lykeshares 1y

#ASX:AZL Could the Dawson Bay Formation Unlock Arizona Lithium’s Full Potential?

Reply

Lykeshares 1y

#ASX:CXO Is Core Lithium’s Finniss Project Poised for a Long-Term Comeback?

Reply

Lykeshares 1y

#ASX:ENR Can Encounter Resources’ West Arunta Project Become Australia’s Next Major Niobium Discovery?

Reply

Lykeshares 1y

#ASX:RDN Can Raiden’s Latest Hires Unlock the Full Potential of the Andover Complex?

Reply

Lykeshares 1y

#ASX:RDN Can Raiden’s New Drilling Program Unlock High-Grade Lithium at Andover South?

Reply

Lykeshares 1y

#ASX:ASN How Will Anson Resources' Green River Lithium Project Shape the Future of Sustainable Mining?

Reply