Develop Global Secures Offtake Agreement and Loan with Trafigura for Woodlawn Mine Restart

Trafigura

Develop Global has finalized a five-year offtake deal and a $63.9 million loan facility with Trafigura, paving the way for the reopening of the Woodlawn copper and zinc mine in early 2025.

A Major Step for Woodlawn Mine

Australian miner Develop Global and commodity trading giant Trafigura have formalized the terms of a pivotal agreement to support the reopening of the long-shuttered Woodlawn copper and zinc mine in New South Wales, Australia. The mine, which has been inactive for nearly three decades, is slated to restart ore extraction in early 2025, with the first concentrates expected by Q2 2025.

The agreement includes:

• A five-year offtake deal, ensuring Trafigura will purchase all minerals processed at Woodlawn.
• A commitment by Develop to produce at least 650,000 tonnes of zinc, copper, and lead concentrates within five years.
• A A$100 million ($63.9 million) loan facility provided by Trafigura, with repayment options via offtake payments or quarterly installments.

Develop Global previously assured investors in August 2024 that the Woodlawn project was "fully-funded through to production," and this deal solidifies its financial foundation.

Strengthening Supply Amid Global Copper Challenges

The deal comes at a critical time as the global copper supply chain faces significant challenges:

• Ecuador’s copper concentrate exports are projected to drop by 20% in 2024 due to production constraints.
• European producer Aurubis, the region's largest copper recycler, has announced reduced output for the 2023–2024 fiscal year.

Woodlawn's reopening will help alleviate some of the pressure on global copper and zinc markets, supplying critical materials for construction, manufacturing, and the renewable energy sector.

A Boost for Regional Mining

The reopening of the Woodlawn Mine marks a milestone for Australia’s mining industry, contributing to the local economy while ensuring a steady supply of base metals. With on-site facilities capable of processing ore into high-quality concentrates, Woodlawn is well-positioned to become a key supplier in the region. The partnership with Trafigura underscores the importance of strategic collaborations in bringing dormant mines back online.

Trafigura to provide $65 million to Australian copper, zinc mine

Global trading firm Trafigura has agreed to provide 100 million Australian dollars ($65.1 million) to subsidiaries of Australian mining firm Develop Global for its Woodlawn copper and zinc mine in New South Wales. The loan ensures Woodlawn is "comfortably and fully-funded through to production," aiming for first production and cash flow by mid-2025, subject to a final investment decision, Develop Global stated.

Under a five-year offtake arrangement, Trafigura will purchase all concentrates produced at Woodlawn. Develop Global, formerly Venturex Resources, acquired the Woodlawn project for $21.6 million in February 2022, marking a key investment for its expanding base metals portfolio. The mine, which produced 19.7 million tonnes of high-grade ore from 1978 to 1998, was previously closed due to low metal prices.

According to Develop Global's production restart study published in April, Woodlawn is expected to yield approximately 12,000 tonnes of copper and 36,000 tonnes of zinc annually over an estimated 10-year lifespan. The total projected payable metal over the mine's life is 80,000 tonnes of copper and 218,000 tonnes of zinc.

Develop Global ships first copper and zinc concentrates to Trafigura

Develop Global

Develop Global ships first copper and zinc concentrates to Trafigura from Australia. The milestone shipment includes lead concentrate as well. As a result, Woodlawn mine restarts commercial flows under a five-year offtake.

Develop Global ships first copper and zinc concentrates to Trafigura: output snapshot

Develop Global ships first copper and zinc concentrates to Trafigura after Q2 processing. The plant treated 163,583t of ore in April–June. It produced 12,689t of concentrate during the period. The concentrates contained 969t copper, 2,340t zinc, and 545t lead. Therefore, Woodlawn re-enters supply chains with multi-metal output.

Ramp-up plan, Woodlawn strategy, and offtake terms

Develop Global ships first copper and zinc concentrates to Trafigura under a binding deal. The December agreement covers all minerals for five years. Production officially restarted in June. Meanwhile, the company targets a throughput ramp to 850,000 t/yr. This plan should lift copper and zinc concentrate availability. It also strengthens cash flow visibility with Trafigura’s logistics and trading reach.

Market implications remain significant for base-metal buyers. Australian concentrate flows diversify smelter feed beyond traditional sources. However, execution on the ramp will determine realized volumes. Stakeholders will watch recoveries, unit costs, and shipping cadence. Woodlawn’s multi-metal slate could hedge price swings across copper, zinc, and lead.

The Metalnomist Commentary

This offtake anchors Woodlawn’s restart while tightening merchant concentrate supply. If the ramp holds, smelters gain reliable tonnage amid project delays elsewhere. Watch for guidance updates on recoveries and any debottlenecking that boosts payable metals.