Glencore and CNGR back $380M Brazil nickel mine with $40M
2026-10-29 11:32:01 [Print]
Glencore and China's CNGR have committed $40 million to Centaurus Metals and agreed to buy the entire forecast nickel concentrate output from its $380 million Jaguar project in Brazil for the first five years of operations, bringing the mine closer to a final investment decision.
The two companies will each invest $20 million in Centaurus and purchase at least 20,000 dry metric tonnes of nickel concentrate annually under separate five-year agreements starting in the first half of 2029, the Australian miner said Wednesday. The contracts cover material containing 30% nickel, with an estimated combined net sales value of $900 million at current metal prices.
The investment will be made in two tranches, with Glencore and CNGR initially contributing $12.5 million each. A second payment of $7.5 million from each company depends on shareholder approval and a final investment decision. CNGR's participation also requires Chinese outbound investment approval, with conditions for the second tranche subject to a Jan. 31, 2027 deadline.
Both investors will receive shares priced at A$0.425 apiece, a 5% premium to Centaurus' 20-day volume-weighted average share price before the agreements were signed.
The new purchase commitments build on an existing Glencore contract announced in March. Together, the arrangements cover approximately 22,500 tonnes of contained nickel annually during Jaguar's initial five years of production.
Prices will be linked to the London Metal Exchange cash settlement nickel price, with the proportion of metal value paid to Centaurus varying according to market conditions. The contracts also provide payments for copper and cobalt byproducts.
The buyers can terminate their agreements if Centaurus fails to ship the first nickel concentrate by the end of 2029, leaving the developer facing a firm commercial deadline as it works to secure financing and begin construction.
The two companies will each invest $20 million in Centaurus and purchase at least 20,000 dry metric tonnes of nickel concentrate annually under separate five-year agreements starting in the first half of 2029, the Australian miner said Wednesday. The contracts cover material containing 30% nickel, with an estimated combined net sales value of $900 million at current metal prices.
The investment will be made in two tranches, with Glencore and CNGR initially contributing $12.5 million each. A second payment of $7.5 million from each company depends on shareholder approval and a final investment decision. CNGR's participation also requires Chinese outbound investment approval, with conditions for the second tranche subject to a Jan. 31, 2027 deadline.
Both investors will receive shares priced at A$0.425 apiece, a 5% premium to Centaurus' 20-day volume-weighted average share price before the agreements were signed.
The new purchase commitments build on an existing Glencore contract announced in March. Together, the arrangements cover approximately 22,500 tonnes of contained nickel annually during Jaguar's initial five years of production.
Prices will be linked to the London Metal Exchange cash settlement nickel price, with the proportion of metal value paid to Centaurus varying according to market conditions. The contracts also provide payments for copper and cobalt byproducts.
The buyers can terminate their agreements if Centaurus fails to ship the first nickel concentrate by the end of 2029, leaving the developer facing a firm commercial deadline as it works to secure financing and begin construction.
Nickel Ore Philippine 1.5%min CIF China
Unit:USD/mt
China refined nickel producers' output statistics by province by month
Unit: mt
