True North Copper has secured offtake and toll-milling agreements with Glencore to support the development of its Cloncurry Copper Project.

True North managing director Marty Costello said the company was incredibly proud of the economic benefits the partnership was set to deliver to north-west Queensland.

“Executing binding offtake and toll-milling agreements with an industry major such as Glencore is a significant milestone for TNC and our Cloncurry Copper Project,” Mr Costello said.

“Glencore has agreed to purchase 100 per cent of the copper metal produced at CCP and we can process up to one million tonnes of ore each year through the nearby processing plant near Cloncurry.

“CCP is fully permitted and TNC is on track to soon be in production for copper, with CCP located in a Tier One jurisdiction.

“TNC’s investment thesis since listing last year has only improved, and we are excited to demonstrate this in the weeks and months to come.”

The CCP ore will be processed at the Ernest Henry concentrator and the resulting copper concentrate will then go to Glencore’s Mount Isa Mines copper smelter. TNC will be entitled to claim a 20 per cent Queensland State Royalty discount over the material processed there.

Related: Significant lift in resources at Wallace North copper project

The True North Copper board last month gave the green light for mining to begin at the Cloncurry Copper Project, which will combine its Great Australia Mine site and the Wallace North resource.

The company is already producing copper sulphate from the refurbished Great Australia Mine (GAM) SX plant. The mining restart plan will see oxide and sulphide ore mined from open pits located at GAM and Wallace North.