Centaurus inks $450m nickel offtake with Glencore for Jaguar project
Australia-listed Centaurus Metals has signed its first binding nickel offtake agreement with commodities major Glencore for production from the Jaguar nickel project in Brazil.
Under the agreement, Centaurus will supply 20 000 dry metric tonnes a year of high-grade nickel concentrate to Glencore for an initial five-year period starting in 2029, when production is expected to begin.
The concentrate will be treated at Glencore’s Sudbury smelting operations in Canada.
The contracted volume represents about one-third of Jaguar’s forecast production capacity of 65 000 t/y of nickel concentrate, equivalent to roughly 6 400 t/y of contained nickel.
Pricing under the agreement will be referenced to the London Metal Exchange cash settlement nickel price, with a variable nickel payability linked to the metal price. Payabilities have also been established for copper and cobalt by-products contained in the concentrate.
At current nickel prices, the agreement is estimated to be worth more than $450-million over the initial five-year term.
“Glencore is one of the biggest names in natural resources globally and one of the longest-standing integrated participants in the nickel sector. Signing them up as a long-term offtake partner is a major coup that validates the quality of the Jaguar project and supports our commercial development strategy,” said MD Darren Gordon.
The agreement remains subject to several development milestones, including Centaurus reaching a final investment decision by September 30, 2026, completing 50% of the project’s tailings dam construction by December 31, 2027, and achieving first concentrate production by January 15, 2029. Failure to meet these milestones could allow Glencore to terminate the agreement.
Gordon noted that the agreement would help support ongoing debt and equity funding processes for the project while strengthening Centaurus’ plans to develop a low-cost supply of nickel from Brazil.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
