TSX-listed Taseko Mines has partnered with trading and investment company Mitsui & Co to develop the Florence Copper project, in Arizona.

Mitsui will invest an initial $50-million in the construction of a commercial production facility at Taseko's Florence project. The initial investment will be in the form of a copper stream agreement on 2.67% of the copper produced at Florence.

Additionally, Mitsui has the option to invest an additional $50-million for a 10% equity interest in the project.

The equity option is exercisable by Mitsui within three years following the completion of a commercial production facility. Should Mitsui elect to exercise its equity option, the copper stream will terminate.

Moreover, Taseko and Mitsui have entered into an offtake agreement for 81% of the copper cathode produced at Florence during the initial years of production.

The parties intend to use this time to develop premium sales channels for ‘green’ copper in the US, leveraging Mitsui’s existing US cathode trading business and the unique environmental benefits of the Florence project.

The project is expected to be the lowest carbon- and energy-intensive cathode producer in North America.

“The agreement with Mitsui establishes a strategic partnership with a leading international company. Mitsui’s investment will complement Taseko’s financing requirements and construction timelines, as well as advance our goal of ensuring the copper produced at Florence is recognised for its low-carbon profile.

“In future, Taseko and Mitsui will evaluate additional investments toward establishing Florence as a zero-carbon copper producer, in terms of Scope 1 and 2 emissions,” says Taseko president and CEO Stuart McDonald.

Mitsui president and CEO Sayu Ueno adds that Florence, once in production, will significantly expand the company’s US cathode trading business and provide an environmentally sound, locally produced product that can be marketed on the basis of its low-carbon advantages.

“We believe Florence will be a preferred source of ‘made-in-the-US’ copper for many end users in North America,” Ueno concludes.