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The three-year agreement will be automatically renewed annually.
Trafigura will purchase 100% of Tombador's production from its namesake project in Brazil sold into the international export market.
The company plans to sell some iron ore into the domestic market in Brazil.
The agreement contains comprehensive terms relating to sale, shipment, delivery, and pricing for Tombador's high-grade lump and fines products including additional working capital support through pre-delivery partial payment.
"With production on track to commence in Q2 2021, we are delighted to have forged a relationship with a company of the calibre of Trafigura," CEO Gabriel Oliva said.
"This partnership provides certainty for sales and working capital support, ensuring a smooth entry to the international market once operations commence."
The high-grade Tombador deposit has a resource of 10.1 million tonnes, of which 8Mt grades 67.3%.
Shares in Tombador were down about 13% early today to 9.1c after surging from 7c to A10.5c during the week. The company listed at below 3c in October.
