The commercial terms of the agreement are confidential, but Sirius said they reflected the anticipated high quality of the Nova copper sulphide concentrate, which is expected to average 29% copper.
 
First nickel and copper concentrate production is due at the end of next year.
 
Sirius plans to export through Esperance, pending approvals, but also has the option to ship through Geraldton.
 
Nova is set to produce 26,000 tonnes of nickel, 11,500t copper and 850t cobalt per annum in two separate concentrates.
 
“We are pleased to have secured an offtake agreement with Trafigura for the first three years of Nova’s initial 10-year mine life, and expect to have a productive and mutually beneficial relationship with Trafigura during this period,” Sirius managing director Mark Bennett said.
 
Trafigura head of metals and mineral trading Simon Collins said the Dutch company was pleased to partner with Sirius.
 
“This is the most exciting base metals development in Australia right now,” he said.
 
GMP Securities analyst Duncan Hughes said while there was never any real doubt that a copper offtake partner would be found, the agreement further de-risked the project.
 
“The initial three-year term also leaves optionality for Sirius to review its offtake arrangements once ramp up and potentially considerable payback of debt is achieved at Nova,” he said.
 
“We look forward to news on the sale of the remaining nickel concentrate.”
 
Earlier this year, Sirius signed a three-year offtake agreement with Nickel West for 50% of the forecast nickel sulphide production.
 
Today, the company said it was in advanced negotiations with another party for the remaining half of the nickel concentrate produced in the first three years.
 
Bennett has previously said the remaining offtake would go to an offshore customer.
 
Sirius expects to finalise the contract by mid-year.
 
Shares in Sirius were up another 5.5% to $3.25 this morning.
 
The company’s shares rose by 5.1% yesterday on rumours that Independence Group was pursuing a merger or takeover of the company.
 
Independence said it was evaluating acquisitions but had not entered into any agreements for a transaction.