Centaurus signs $450 million nickel offtake deal with Glencore for Jaguar project

Centaurus Metals, an Australian critical minerals developer, has signed its first binding nickel offtake agreement with commodities giant Glencore for production from the Jaguar nickel project in Brazil. 

Under the five-year deal, starting in 2029 when Jaguar is expected to begin production, Centaurus will supply 20,000 dry metric tonnes of high-grade nickel concentrate annually. The material will be processed at Glencore’s Sudbury smelting operations in Canada. 

The contracted volume represents roughly one-third of Jaguar’s forecast output of 65,000 tonnes of nickel concentrate per year, equivalent to about 6,400 tonnes of contained nickel. Pricing will reference the London Metal Exchange cash settlement nickel price, with payability adjusted according to market conditions. Copper and cobalt by-products contained in the concentrate also have established pricing terms. 

At current nickel prices, the agreement is valued at more than $450 million over its initial term. 

“Glencore is one of the largest and longest-standing participants in the nickel market,” said Centaurus Managing Director Darren Gordon. “Signing them as a long-term partner validates the Jaguar project and supports our broader commercial strategy.”

Development milestones set for Jaguar 

The offtake agreement is contingent on several development milestones, including a final investment decision by September 30, 2026, completion of half the project’s tailings dam by December 31, 2027, and first concentrate production by January 15, 2029. If these targets are not met, Glencore may terminate the deal. 

Gordon added that the agreement will help secure ongoing debt and equity funding for Jaguar while reinforcing plans to supply nickel at competitive costs from Brazil.

A strategic asset in Brazil 

Australia-listed Centaurus Metals focuses on developing the Jaguar Nickel Sulphide Project in the Carajás Mineral Province of northern Brazil, a region renowned for its world-class mineral deposits. Acquired from global mining giant Vale S.A. in April 2020, Jaguar covers 30 square kilometers and includes multiple nickel sulphide deposits and exploration targets. 

The project forms the cornerstone of Centaurus’ ambition to build a diversified Brazilian critical minerals business with strong environmental, social, and governance standards. 

Gordon brings more than 25 years of experience in mining finance and project development, with extensive expertise in securing both debt and equity funding for resource projects and navigating Brazil’s regulatory framework.

Glencore’s global reach 

Founded in 1974, Glencore produces and markets more than 60 commodities worldwide. Operating in over 30 countries with about 140,000 employees, the company, led by CEO Gary Nagle, has focused on metals critical to clean energy, including copper, nickel, and cobalt, strengthening its role in sustainable mining and the global energy transition.