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The German smelter told Fastmarkets the partial offtake deal will support stable throughput across its smelter network over the next one-to-two years. Troilus expects to place the balance of anticipated production under additional long-term arrangements with tier-one counterparties as it targets a 2026 construction decision.
The concentrate, with approximately 10% copper grade, would provide Aurubis with an estimated 8,000-12,000 tonnes per year of copper content, based on feasibility study projections of 17.3 million lbs annually of payable copper, according to industry analysts. This compares with Fastmarkets’ typical clean standard concentrate specifications of around 26% copper grade.“The real value for Aurubis lies in the concentrate’s gold and silver by-products rather than copper volume, making these high-margin rather than high-tonnage tonnes,” a veteran industry analyst told Fastmarkets. “Aurubis could process its share of the concentrate in approximately two days.”The analyst said that Aurubis’ agreement represents only a partial offtake of the 75,000 tonnes per year total, with other tier-one smelters, potentially including Boliden, taking additional portions of the production.According to Troilus Gold’s July 14, 2025 press release, the company entered into indicative commercial offtake terms with Boliden Commercial AB for the purchase of copper-gold concentrate from the Troilus project in Quebec.
The memorandum of agreement, signed on August 26 during Canada’s Critical Minerals Mission to Germany, represents only a partial offtake of Troilus’ expected annual production. The Canadian miner is planning to place the remainder under additional long-term contracts with other tier-one counterparties.
“The market for clean copper concentrate is increasingly constrained, with rising competition and pricing pressure,” a manager at Aurubis told Fastmarkets. “The Troilus agreement helps us lock in long-term quality supply and navigate the widening gap between smelter demand and available clean feedstock.”
The deal comes as benchmark treatment/refining charges (TC/RCs) for 2026 have been agreed at zero between Chilean miner Antofagasta and Chinese smelters for the first time in history, down from the $23.25 per tonne/2.325 cents per lb agreed for some 2025 supplies. Antofagasta also finalized TC/RCs of $0 per tonne/0 cents per lb with South Korea’s LS MnM Copper Smelter during mid-year supply talks in July.
Fastmarkets calculated the weekly copper concentrates TC index, cif Asia Pacific – a mid-point between smelter and trader buying levels – at $(62.10) per tonne on Friday August 29. This is down by $0.20 per tonne from $(61.90) per tonne a week earlier.
Aurubis said the agreement reflects a broader strategy to prioritize long-term bilateral contracts over spot-indexed pricing.
“[Long-term bilateral agreements] offer greater planning security, reduce exposure to index volatility, and foster deeper partnerships with suppliers,” Aurubis’ representative said.
Since the start of the year, Fastmarkets’ copper concentrates TC index has descended into deep negatives for the first time in its 12-year history. This reflects extreme supply tightness due to smelter overcapacity and aggressive trader buying behavior.
The index has stabilized in the mid-to-low $(60s) per tonne since May after a precipitous fall over the first half of the year, including a multi-month run of consecutive record lows. Smelters have been forced to reduce capacity or switch to higher ratios of scrap feed where possible to relieve concentrate demand. More capacity reductions are likely in 2026 as annual benchmark terms are expected to be set at or below zero, according to Fastmarkets’ analysis.
“[There is a] symbiotic relationship between miners and smelters,” a mining source told Fastmarkets, referring to how mining companies need smelters to process copper concentrates into refined copper to sell to end users or put into exchange warehouses for trading.
However, the mining source said of recent conditions that “[the] power is now with the miners to do more spot” due to heavy competition for the concentrates.
Given that recent market dynamics have favored miners, some have been incentivized to allocate more material to the spot market, although the majority of output has historically been committed to long-term contracts, which are believed to be aligned with the benchmark system.
Aurubis anticipates “stable throughput across [its] smelter network” over the next one-to-two years, with the Troilus concentrate expected to support these volumes by securing predictable, high-quality feedstock essential for maintaining output and optimizing processing efficiency.
The agreement is distinguished by its strategic alignment with government-backed financing instruments, including Germany’s untied loan guarantee (UFK) program, structured by KfW IPEX-Bank together with Euler Hermes, according to both companies.
Troilus expects the deal to advance in parallel with its broader debt financing package of up to $700 million, announced on March 13.
“This [memorandum of agreement] is distinguished by its strategic alignment with government-backed financing instruments and by the policy context in which it was executed – during Canada’s Critical Minerals Mission to Germany,” an official Troilus spokesperson told Fastmarkets.
The Canadian miner is targeting a construction decision in 2026, with first production expected in 2028-2029.
The concentrate from the Quebec project is expected to be “relatively clean” and contain copper, gold and silver as payable metals, meeting Aurubis’ quality benchmarks for metal content, according to the German smelter, who is also one of the world’s largest copper recyclers.
“[The concentrate] contains copper, gold, and silver as payable metals, and meets our quality benchmarks for metal content,” Aurubis said.
Commercial terms, including pricing mechanisms, will be finalized in the definitive agreement. Troilus expects “customary market-based structures for clean concentrates,” the company said. “We’re not disclosing specific pricing formulas.”
The deal forms part of Aurubis’ efforts to diversify its sourcing base and reduce exposure to geopolitical and regulatory risks in other regions – including Panama, the Democratic Republic of Congo and Mongolia, the company said.
“We continuously explore partnerships to diversify our sourcing base and reduce exposure to geopolitical and regulatory risks,” Aurubis said. “Canada remains an attractive sourcing area due to its stability and resource quality.”
The agreement reinforces Aurubis’ “commitment to sourcing high-quality concentrate from a broad portfolio of global suppliers with whom we enter into and maintain long-term partnerships,” according to the smelter.
The agreement builds on robust feasibility results from the Troilus project, which is expected to operate as a large-scale, 22-year, 50,000-tonnes-per-day open-pit mining operation.
For Troilus, the memorandum of agreement represents “a key de-risking step that advances both offtake and project financing in tandem,” according tothe company.
The relationship between the two companies is expected to deepen across scheduling, quality optimization, traceability and sustainability reporting, and long-term planning as Troilus moves toward construction, with potential to extend terms or adjust volumes over time subject to performance, permitting and market conditions.
Ocean Partners USA is acting as Troilus’ independent third-party advisor in support of the company’s concentrate offtake strategy, while Auramet International continues to assist with structuring the debt package and engagement with potential lenders and strategic partners.
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