Archive | Copper

Southern Copper wins auction for massive Peru copper project – by Frik Els (Mining.com – February 20, 2018)

http://www.mining.com/

An auction for the $2 billion Michiquillay copper project in Peru attracted 10 interested companies according to Peru’s government investment agency Proinversión with Southern Copper Corp declared the winner on Tuesday.

Reuters reports Southern Copper won the tender with a proposal to transfer $400 million to the government and pay 3% royalties. Southern Copper is controlled by conglomerate Grupo Mexico. Southern’s chief executive told Reuters in September that Michiquillay has arsenic impurities, requiring a “slightly higher” investment to clean up the area.

According to Proinversión, the other companies that pre-registered for the tender included Peru’s Buenaventura, local units of Rio Tinto, Teck Resources and Hudbay Minerals, as well as Compania Minera Milpo, a company controlled by Brazil’s Votorontim. Milpo had offered $250 million in transfers and 1.875% royalties. Eight companies did not end up bidding. Continue Reading →

Barrick mulls selling copper business as it faces lower production, higher costs – by Niall McGhee (Globe and Mail – February 16, 2018)

https://www.theglobeandmail.com/

Barrick Gold Corp. is contemplating getting out of the copper business. President Kelvin Dushnisky said a sale of the copper assets is a possibility, although the company is not running a sales process at this time.

“Would we consider divestment in some point in time? Yes,” Mr. Dushnisky said in an interview with The Globe and Mail.

Barrick acquired its copper assets primarily through its US$7.3-billion purchase of Equinox Minerals Ltd. in 2011. The high-priced acquisition, timed shortly before a global slump in metals prices, proved to be a financial disaster, as Barrick wrote down the value of these assets by US$3.8-billion less than two years later. Continue Reading →

Pembridge grabs copper-gold-silver mine in Canada’s Yukon – by Cecilia Jamasmie (Mining.com – February 15, 2018)

http://www.mining.com/

Pembridge Resources (LON:PERE) said Thursday it was buying Capstone Mining’s (TSX:CS) Minto copper-gold-silver mine in Canada’s Yukon for $37.5 million in cash plus a 9.9% stake in the company.

The miner, which last year moved from the AIM to LSE main board, said the acquisition makes of Pembridge a cash flow generating copper producer.

The London-based company said it plans to raise $50 million via an equity placement. The money will be used to fund the proposed acquisition and provide resource development and working capital, it said. Continue Reading →

Teck sees strong demand for steelmaking coal in 2018 – by Susan Taylor (Reuters Canada – February 14, 2018)

https://ca.reuters.com/

TORONTO (Reuters) – Teck Resources Ltd, the world’s second-biggest exporter of steelmaking coal, said on Wednesday that growing global steel production is expected to boost demand for its coal in 2018, though coal trade competition will also likely rise.

Vancouver-based Teck, which also mines copper, zinc, gold and oil sands, said it is “feeling pretty good about 2018” after reporting in-line financial results.

“Most of us forget what this feels like, but it’s certainly very good for commodity markets, and they are now demand driven, rather than supply driven,” Chief Executive Don Lindsay said on a conference call. Continue Reading →

Copper, iron ore price jump sparks rally in mining stocks – by Frik Els (Mining.com – February 14, 2018)

http://www.mining.com/

Mining and metals investors were piling into the sector’s big names on Wednesday as gold jumped, base metals prices surged and iron ore continued to rally on optimism about global demand for raw materials ahead of a holiday week in top consumer China.

Gold enjoyed its best trading since the Brexit vote in June 2016 on Wednesday. Copper bounced to above the $7,000 a tonne ($3.24 per pound) level bringing the bellwether metal’s gains just this week to more than 6%. Nickel surged 4.8% to $14,100 a tonne, the highest since May 2015, while zinc ended nearly 3% higher to exchange hands for $3,567, a near decade high.

The iron ore price which has been defying expectations of a pullback for months gained on Wednesday with benchmark Northern China import prices rising to a five-week best of $78.25 a tonne. Continue Reading →

‘Curveballs’ force Acacia Mining to ditch dividend, post $700M loss amid Tanzania dispute – by Gabriel Friedman (Financial Post – February 13, 2018)

http://business.financialpost.com/

From the Democratic Republic of Congo to Tanzania, a raft of new laws were passed in 2017 that challenge how mining companies have hewed to previous agreements

Acacia Mining produces gold and copper, both of which are surging in price, so why did the company ditch its dividend and post a $700 million loss?

“We were thrown … a lot of curveballs,” chief executive Peter Geleta said on an investor earnings call on Monday. “In fact, I don’t think many people would have faced what we faced last year in their whole careers.”

He blamed the company’s woes on the Tanzanian government, which wants to renegotiate how it shares in the wealth from minerals extracted inside its borders. Continue Reading →

Central Asia Metals looks to enter Africa in search of copper project – by Zandi Shabalala (Reuters Africa – February 13, 2018)

https://af.reuters.com/

LONDON (Reuters) – Base metals miner Central Asia Metals (CAML) is on the hunt for a new copper project in Southern Africa for up to $400 million in what would be its first foray into the continent, its chief executive said.

The London-listed company, which has two mines in Kazakhstan and Macedonia, is prepared to spend $300 million-$400 million in countries including Namibia, Botswana and Zambia, CAML’s Nick Clarke told Reuters.

Flush with cash brought on by a recovery in commodity prices, miners are paying dividends again and slowly returning to the search for new assets. Continue Reading →

Risk of disappointment for copper bulls as wage deals sealed – by Eric Onstad (Reuters U.S. – February 8, 2018)

https://www.reuters.com/

LONDON (Reuters) – Copper bulls who are betting on labor strife this year due to a full calendar of contract talks may be disappointed if early wage deals at two copper mines are a signpost for further agreements with mine workers.

Benchmark copper prices rallied 12 percent in December, partly due to fear of shortages if workers go on strike since many major operations in top producers Chile and Peru have contacts expiring this year, including at top mine Escondida.

Chile’s state-owned Codelco said late last month it had struck a contract deal with workers at its Andina copper mine, while workers at the Lomas Bayas mine accepted a contract offer from operator Glencore Plc early in January. Continue Reading →

In Duluth, more concern about copper-mining impact – by John Myers (Duluth News Tribune – February 8, 2018)

https://www.duluthnewstribune.com/

Supporters of the proposed PolyMet project won the field Wednesday night in Aurora on the Iron Range, but on Thursday evening in Duluth opponents of Minnesota’s first-ever copper mine made their case.

About 1,500 people attended the public meeting on permits for the proposed mine — about two-to-one against the project — with dozens on both sides speaking at the Duluth Entertainment Convention Center.

It was the second of two meetings held to take public comments on the most important of 21 permits PolyMet needs in hand before it can begin to mine copper, nickel and other valuable metals near Babbitt and process them in an old taconite plant near Hoyt Lakes. Continue Reading →

Many big new copper mines likely to be needed – Anglo – by Martin Creamer (MiningWeekly.com – February 6, 2018)

http://www.miningweekly.com/

CAPE TOWN (miningweekly.com) – Based on two relatively moderate and reasonable growth assumptions, the world will need the equivalent of another 22 Collahuasi copper mines to meet expected copper demand by 2030, Anglo American base metals marketing head Alex Schmitt said on Tuesday.

Collahuasi, which Schmitt described as the second biggest copper mine in the world, produced 506 000 t of copper in 2016. “That’s a true supply cliff that mining needs to deliver,” Schmitt said during a panel discussion at the Investing in African Mining Indaba, at which Creamer Media’s Mining Weekly Online is taking part.

Working on the assumption that the growth rate of copper over the next 13 years is 2% a year, which in historic terms is not high, the estimate is that the world would need the equivalent of another 13 Collahuasi copper mines by 2030. Continue Reading →

Private capital favours investing in copper over gold for first time – by Frik Els (Mining.com – February 5, 2018)

http://www.mining.com/

Gold projects are no longer the favourite destination of private capital raised for investment in the mining sector as optimism about electric vehicle demand steer funds into battery metals.

Private-equity deals in the mining industry bounced back in 2017 according to a new report by UK law firm Berwin Leighton Paisner with investment in the sector jumping by more than 30% to $2.3 billion.

Copper overtook gold as the most attractive commodity in 2017, with $1.6 billion in deals representing just shy of 70% of all money flowing into the sector. Continue Reading →

Ottawa lent $1 billion to a mining company that allegedly avoided nearly $700 million in Canadian taxes – by Marco Chown Oved (Toronto Star – February 5, 2018)

https://www.thestar.com/

Critics question whether the government should help companies that don’t pay tax in Canada.

The Canadian government provided more than $1 billion in loans to a mining company that used a complex offshore business structure to allegedly avoid nearly $700 million in Canadian tax.

Turquoise Hill Resources, a Canadian company headquartered in Vancouver and listed on the Toronto and New York stock exchanges, received a loan of $750 million (U.S.) in 2015 from Export Development Canada, a Crown corporation that supports Canadian businesses abroad. The loan is worth more than $1 billion Canadian, according to EDC’s disclosure database.

Between 2010 and 2016, Turquoise Hill ran the finances for its massive Oyu Tolgoi mine in Mongolia through shell companies in Netherlands and Luxembourg. Continue Reading →

Rio Tinto denies Dutch NGO allegation it avoided Oyu Tolgoi tax – by Barbara Lewis (Reuters U.S. – January 31, 2018)

https://www.reuters.com/

JOHANNESBURG (Reuters) – Rio Tinto on Wednesday denied allegations by a Dutch non-profit organization that it had avoided paying $700 million of tax to Mongolian and Canadian authorities relating to its giant Oyu Tolgoi copper project.

Rio Tinto is investing about a $1 billion a year at Oyu Tolgoi in the Gobi Desert, where it operates a mine and is building an underground extension that would add approximately 500,000 tonnes of production a year in the next decade.

The Centre for Research on Multinational Corporations, known as SOMO, alleged in a report that Rio and its Canadian subsidiary Turquoise Hill used so-called mailbox companies in the Netherlands and Luxembourg to avoid $470 million in Canadian taxes and $230 million in Mongolian taxes. Continue Reading →

The Canadian company behind this Mongolian mine has avoided half a billion dollars in taxes, report alleges – by Marco Chown Oved (Toronto Star – January 31, 2018)

https://www.thestar.com/

A Canadian mining company operating in one of the world’s biggest copper deposits has avoided more than half a billion dollars in Canadian tax over the last seven years, according to a report released Wednesday.

By using a complex network of tax haven subsidiaries and lending money to itself at high interest rates, Turquoise Hill Resources has also deprived the government of Mongolia — where the mine is located — of an additional $230 million (U.S.), states the report produced by the Dutch non-profit SOMO.

“It’s shameless tax avoidance,” said Vincent Kiezebrink, one of the report’s authors. “It doesn’t just affect the world poorest, but also regular people in Western countries as well.” Continue Reading →

Mongolia slaps $155M tax bill on Turquoise Hill’s mine; NGO claims company owes more – by Gabriel Friedman (Financial Post – January 30, 2018)

http://business.financialpost.com/

Turquoise Hill Resources Ltd. and parent Rio Tinto Group’s ambition to build one of the world’s largest copper and gold mines, called Oyu Tolgoi, in Mongolia’s Gobi Desert, has hit a number of stumbling blocks in recent weeks.

Last week, Jean-Sebastien Jacques, the chief executive of Rio Tinto, flew to Mongolia’s capital city to meet with prime minister Ukhnaagiin Khurelsuk about how to build “win-win” partnerships.

One looming dispute is the Mongolian government’s claim that Oyu Tolgoi owes an additional US$155 million in taxes — the mine’s second tax dispute since 2014. Continue Reading →