![Chile and United States Chile and United States](https://cdn-www.bnamericas.com/img/flags/ALL.jpg)
Chilean Cobalt signs LOI for offtake deal with Glencore
![Chilean Cobalt signs LOI for offtake deal with Glencore](https://cdnimg.bnamericas.com/FggbzAYlMdDvnxqYQZSeAczxpyCUgKLBsfypKpbqBbEeSvBdSOYdHuJWgDaiytOO.jpg)
US-based Chilean Cobalt Corp (C3) signed a non-binding letter of intent with Swiss multinational Glencore for the sale of the cobalt and copper that the former plans to extract from its La Cobaltera project in northern Chile.
Under the offtake agreement, C3 is expected to supply Glencore with 100% of the company's production of cobalt and copper for an initial period of five years, according to a statement.
“C3 and Glencore anticipate that the majority or full spectrum of copper and cobalt intermediate product stream will be shipped into the United States and/or US Free Trade Agreement countries,” the junior company said. “The sales price will be based on an agreed upon pricing formula linked to future prevailing market prices.”
The initiative is part of C3's search for financing to continue developing La Cobaltera in Atacama region, which is currently in the advanced exploration stage. Capex is put at US$250mn for estimated cobalt production of 3,000-5,000t/y and 20,000-25,000t/y of copper.
“Glencore is expected to provide strategic support for the advancement of C3's La Cobaltera Phase 1 cobalt-copper project and collaboration on greenfield solutions for domestic US processing and refining into battery materials and/or metal products,” the release states.
“Through this offtake agreement, C3 is expected to be able to leverage Glencore's own capabilities and global network as one of the world's leading industrial producers and marketers of cobalt with extraction and processing in the Democratic Republic of the Congo, Australia, Canada, and Norway - and with a growing cobalt recycling presence in the US.”
The contract, which is subject to the typical conditions of such a transaction, comes after C3 announced in June a non-binding agreement to receive a loan of up to US$317mn for 15 years from the US EXIM Bank to finance the construction of La Cobaltera and its feasibility study, as well as the possible acquisition of new mining concessions in Chile.
C3 is optimistic about its Chilean project as cobalt is a critical mineral for the manufacture of lithium batteries for electromobility and clean energy.
According to C3, there will be a widening deficit in cobalt from 2030, and “there is an insufficient pipeline of exploration and development projects to fill this gap," the company said in a corporate presentation, which can be seen in the Documents box in the top-right corner of the screen.
Among the advantages of La Cobaltera are a mineralized area of 2,635ha, fully owned by C3, its low altitude (700m-1,100m), proximity to the port of Huasco and the distance from the coast (10km). Planning considers the use of seawater in operations.
In addition, the project is close to the regional electrical grid, offers the potential to be supplied by solar energy and is located in Chile, one of the countries with which the US has an FTA, so there is the possibility of accessing the benefits of the Inflation Reduction Act that grants tax credits and incentives to entities that promote domestic production of clean energy and electric vehicles.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Mining & Metals (United States)
![Newmont and union reconcile proposals to end Peñasquito strike](https://cdn-www.bnamericas.com/img/sectors/miningmetals_1.jpg)
Newmont and union reconcile proposals to end Peñasquito strike
The proposals by Newmont and the union at the Mexican mine state that no additional employee profit sharing payments will be made this year.
![Newmont, Peñasquito union may reach deal to end strike soon](https://cdn-www.bnamericas.com/img/sectors/miningmetals_2.jpg)
Newmont, Peñasquito union may reach deal to end strike soon
In a statement addressed to workers, section 304 said union leader Napoleón Gómez Urrutia "is looking for the best solution to the current conflict."
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Mining & Metals
Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Laguna Verde (Chile)
- Current stage:
- Updated:
2 weeks ago
- Project: Useful Life Extension Project (Los Pelambres Future, ex-Los Pelambres Mining Complementary Infrastructure Project Phase 2)
- Current stage:
- Updated:
1 week ago
- Project: Hierro Apurímac
- Current stage:
- Updated:
2 weeks ago
- Project: La Joya
- Current stage:
- Updated:
2 weeks ago
- Project: Hilarión
- Current stage:
- Updated:
2 weeks ago
- Project: Margarita
- Current stage:
- Updated:
2 weeks ago
- Project: Pebas
- Current stage:
- Updated:
2 weeks ago
- Project: Itabirito P15 (Mina Casa de Pedra)
- Current stage:
- Updated:
2 weeks ago
- Project: Huancapetí expansion
- Current stage:
- Updated:
2 weeks ago
- Project: Tantahuatay expansion
- Current stage:
- Updated:
2 weeks ago
Other companies in: Mining & Metals (United States)
Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Arcadis U.S., Inc.
- Company: BofA Securities, Inc.  (BofA Securities)
-
BofA Securities, Inc., formerly Bank of America Merrill Lynch, is the global banking and global markets business division of Bank of America Corp. It was incorporated in 2013 af...
- Company: Mayer Brown LLP  (Mayer Brown)
-
Mayer Brown LLP is a global law firm with offices in a number of cities across the Americas, Europe and Asia. In Latin America, Mayer Brown provides clients regional experience ...
- Company: Sherwin-Williams Chile S.A.  (Sherwin-Williams Chile)
-
Sherwin-Williams Chile opera una planta de fabricación de pinturas con una superficie total de 45.000 m2 (edificada: 25.000 m2) y opera en los segmentos de hogar, arquitectura y...
- Company: SND Consulting
- Company: Derrick Corporation
- Company: Victaulic Company  (Victaulic)
-
Victaulic is an American manufacturer of mechanical pipe joints, flow control systems and fire protection founded in 1919. The company owns 14 manufacturing plants and 29 branch...
- Company: A.R. Wilfley & Sons, Inc.  (A.R. Wilfley & Sons)
-
A.R. Wilfley & Sons is an American supplier of centrifugal pumps. The company's products include mining mud pumps (aggregates, coal, copper) and chemicals (caustic soda, hydroch...