Copper – Page 70 – Republic of Mining

Freeport points to progress in Indonesia permit talks – by Susan Taylor (Reuters U.K. – January 25, 2018)

January 26, 2018

https://uk.reuters.com/

TORONTO (Reuters) – Freeport-McMoRan Inc (FCX.N) said it was edging closer to a permit deal with Indonesia for its massive Grasberg mine, but the world’s second-biggest copper producer cautioned that it has not yet struck any formal agreements.

There has been little sign of progress since last August, when Freeport promised to divest a 51-percent stake in Grasberg, the world’s second-biggest copper mine, to the Indonesian government, in exchange for long-term operating rights.

But negotiations have produced positive results, insisted Chief Executive Richard Adkerson on a conference call with analysts, adding that all parties aim to complete talks in the first half of 2018.

Congo mining code passes Senate without opposition (Reuters U.S. – January 24, 2018)

January 25, 2018

https://www.reuters.com/

KINSHASA (Reuters) – Democratic Republic of Congo’s new proposed mining code, which the industry has warned will stifle investment in the copper and cobalt-rich nation, sailed through the Senate without opposition late on Wednesday.

A version passed by the National Assembly – Congo’s lower house of parliament – last month would increase taxes and royalties, including potentially more than doubling royalties on cobalt, a key ingredient in lithium-ion batteries.

Nearly two-thirds of the world’s cobalt comes from Congo. Demand for the metal has surged due to expected growth in the electric vehicle sector, causing the price on the London Metal Exchange to triple over the last two years.

Copper Inventories Surge Most in 10 Months, Sending Prices Lower – by Susanne Walker Barton and Mark Burton (Bloomberg News – January 23, 2018)

January 24, 2018

https://www.bloombergquint.com/

Bloomberg) — Copper slumped to a one-month low as a large delivery of metal into exchange warehouses in Asia refocused attention on demand during a seasonally weak period for industrial activity in China.

Prices fell as much as 2.6 percent to $6,885 a ton on the London Metal Exchange as inventories tracked by the bourse jumped by the most in 10 months, continuing a pattern of spikes and drawdowns in LME inventories seen throughout 2017.

The delivery comes as manufacturers in China prepare to dial back output during the week-long Lunar New Year holiday next month, and adds to evidence that copper demand is hitting a soft patch often seen at this time of year, according to Robin Bhar, an analyst at Societe Generale SA.

Rio Tinto digs deeper into Mongolia – by Melanie Burton and Terrence Edwards (Reuters U.S. – January 22, 2018)

January 22, 2018

https://www.reuters.com/

MELBOURNE/ULAANBAATAR (Reuters) – Global miner Rio Tinto will set up a new office in the Mongolian capital, separate from its giant Oyu Tolgoi project, to focus on exploration and local ties, strengthening its commitment to one of the world’s greatest copper prospects.

Mongolia’s proximity to neighbouring China, the world’s biggest copper consumer, has attracted interest from international prospectors as an anticipated leap in electric vehicle demand and renewable energy would increase consumption of a commodity that already has multiple uses.

But some investors are nervous about the unpredictability of Mongolia’s young democracy and Rio Tinto, which is operating an expansion project at the Oyu Tolgoi copper mine in Mongolia, has had difficult negotiations with the government in the past.

Copper miners challenged by water supply – by Valentina Ruiz Leotaud (Mining.com – January 18, 2018)

January 18, 2018

http://www.mining.com/

Wood Mackenzie sees copper demand increasing significatively over global supply in the next decade and, together with it, miners’ need for reliable sources of water.

“As constant and high demand for copper leads to resources running out, copper grades will progressively diminish. As a result, water demand will increase because it will be necessary to process more material to obtain the same amount of copper,” the consultancy group wrote in a report made public this week.

Aware of this, some miners with projects in Chile are already taking steps to guarantee the continuity of their operations. In the document titled The awakening of a dormant challenge: water management in the copper-mining industry, Wood Mackenzie says that companies in the world’s top copper producer are starting to minimise their use of underground and surface water, and are gradually increasing their use of seawater and recirculated water.

Copper growth could be hampered by water resources (Mining Journal – January 2018)

January 15, 2018

http://www.mining-journal.com/

Falling grades and increased costs are often cited as reasons why there is not enough copper coming through the project pipeline, but water – or a lack of it – is another constraint holding back the industry’s growth, according to analysts from Wood Mackenzie.

The water issue is not as simple as being able to locate a captive source to start a development, it is much more complicated.

“From supply origin (surface, ground, sea or third-party water), management (recirculation and efficiency) to discharge (treatment and final discharge), there are political, environmental, economic and social repercussions,” the analysts said.

All of these have led to investors asking mining companies how they plan to manage water resources when evaluating potential investment projects.

One Thing Missing From Copper Boom Is Buyers of Actual Metal – by Mark Burton and Susanne Barton (Bloomberg News – January 11, 2018)

January 12, 2018

https://www.bloomberg.com/

The world economy is taking off, factories are humming again and copper futures prices are jumping. The one thing that’s missing is buyers of the actual metal. Evidence of the anomaly can be seen in the premiums that purchasers of physical copper pay over futures prices to cover shipping and other costs.

Typically these rise as demand grows and buyers are willing to pay extra to access supply that’s being used up at a quicker rate. Yet, even with factories running at the fastest in years, premiums have been stuck at a low level.

That’s a disconnect with the optimism in futures markets, where hedge funds have been adding to their bullish bets since the middle of December. Such wagers have helped fuel a rally in prices to their highest since early 2014.

Mongolian Copper Corp says to fight government stake repurchase – by Barbara Lewis and Terrence Edwards (Reuters U.S. – January 9, 2018)

January 10, 2018

https://www.reuters.com/

LONDON/ULAANBAATAR, Jan 9 (Reuters) – Mongolian Copper Corporation (MCC) said on Tuesday it will fight a decision by the Mongolian government to repurchase its stake in one of Asia’s biggest copper mines for about $400 million after a failed attempt to nationalise it.

Earlier on Tuesday, the government passed a resolution to buy the 49 percent holding, giving Mongolia full state control of the Erdenet mine, following a ruling by the country’s Supreme Court in December against the nationalisation decided by parliament in February 2017.

MCC said no agreement had been reached with the government and it would fight the decision legally.“We will protect our legal ownership rights locally and internationally,” MCC’s Chairman Munkhbaatar Myagmar told Reuters on Tuesday in London. He was is in the city for talks with law firm Omnia Strategy, which is representing the company.

[Papua New Guinea Mining] Bougainville imposes moratorium on Panguna mine over fears of civil unrest – by Helen Davidson (The Guardian – January 10 2018)

January 10, 2018

https://www.theguardian.com/

The Bougainville government has enacted an indefinite moratorium on renewing the licence of a controversial mining company over fears it could reignite violent civil conflict.

In December Bougainville landowner groups were called to vote on allowing Bougainville Copper Limited (BCL) to renew their mining licence and potentially reopen the Panguna mine, but the vote was split.

“If we went ahead now, you could be causing a total explosion of the situation again,” the Bougainville Autonomous Government (ABG) president, John Momis, told the ABC on Monday.

Copper Exploration in Northern Mexico’s Sierra Madre Region (Copper Investing News – January 8, 2018)

January 9, 2018

https://investingnews.com/

This INNspired article is sponsored by VVC Exploration (TSXV:VVC). This article was written according to INN editorial standards to educate investors.

Mexico has a long and storied mining history that dates back to the Aztecs. The nation’s geology represents a treasure trove of natural resources, including gold, silver and copper.

The Sierra Madres region in Northern Mexico was home to many historic artisanal mining camps where precious metals and copper were mined close to surface.

Now, modern exploration technologies such as aerial drones and advanced geophysical surveys are enabling new exploitation in areas of known copper mineralization — much like the oil companies that have sparked a revolution in the country’s oil and gas sector, using modern drilling techniques to revitalize existing wells and add new zones in existing fields.

[Michigan Upper Peninsula] Geologists didn’t always get copper mining right – by Graham Jaehnig (Te Daily Mining Gazette – January 7, 2018)

January 8, 2018

http://www.mininggazette.com/

Native copper was, to state it bluntly, a geologic fluke. It did not occur in commercial quantities anywhere on Earth except in the Lake Superior copper district.

Although its existence in the region had been known in Europe and the American colonies since the French had discovered it in the 1600s, most knowledgeable people who had seen specimens disregarded native copper as an absolute and isolated freak of nature. As a freak of nature, however, native copper stumped many geologists.

Some geologists, like Douglass Houghton, Columbus C. Douglass and Samuel Hill, did not focus their studies so much on why native copper occurred, but rather on how much of it occurred. Could it be profitable? Was there enough to mine? Was it pure?

State of Minnesota releases PolyMet’s draft permit to mine – by John Myers (Duluth News Tribune – January 5, 2018)

January 8, 2018

https://www.duluthnewstribune.com/

The state of Minnesota has given its preliminary blessing to the construction and operations plan for the state’s first-ever copper-nickel mine, releasing PolyMet Mining Co.’s draft permit to mine for public review Friday.

The draft permit from the Department of Natural Resources includes specific plans for how PolyMet would mine near Babbitt and process ore near Hoyt Lakes over the next 20 or more years.

The permit release signals the state is generally satisfied with how PolyMet plans to build, mine and then close the operations without harming the environment — especially without releasing potentially acidic mine waste into the St. Louis River ecosystem.

Nickel on the upswing – by Harold Carmichael (Sudbury Star – January 3, 2018)

January 3, 2018

http://www.thesudburystar.com/

“So, we should remember that the many sustainable mining
practices — lowering carbon emissions, mine safety and an
96 per cent reductions in sulphur emissions since 1970, just
to name a few — done in the Sudbury Basin to supply the
necessary nickel, copper and cobalt puts this community in
a leading role in the transition to a green auto future.

“Both the provincial and federal levels of government should
recognize this important fact and ensure none of their green
energy policies hinder the future growth of this strategic
sector.” (Stan Sudol – RepublicOfMining.com)

It looks like 2018 will be a very good year for nickel. Last month, world metal markets closed for the Christmas break with nickel on an upswing. The metal reached $5.46/pound U.S., more than $1 U.S. higher than the average price of $4.43/pound U.S. in the first half of the year..

The $5.46 U.S. price was also 23 cents higher than the $5.23U.S. recorded back on Nov. 27. The amount of nickel sitting in London Metal Exchange warehouses –another indicator of where prices are headed — is also showing signs of life. On Nov. 27, there were 382,362 tonnes of nickel in the warehouses. But as of Dec. 20, the total had fallen to 373,400.

Gianni Kovacevic sees even greater price potential for the conductive commodity – by Greg Klein (Resource Clips – December 29, 2017)

January 3, 2018

http://resourceclips.com/

Evangelist he may be, but Gianni Kovacevic’s hardly a voice crying in the wilderness. His favourite metal displayed stellar performance last year, reaching more peaks than valleys as it climbed from about $2.50 to nearly $3.30 a pound.

But Kovacevic believes copper has a long way to go yet. That will be a function of necessity as the metal shows “the strongest demand growth of any of the major commodities.” Especially persuasive in his optimism, Kovacevic brings his message to the 2018 Vancouver Resource Investment Conference on January 21 and 22.

As a researcher, commentator and investor who’s also the CEO/chairperson of CopperBank Resources CSE:CBK, co-founder of CO2 Master Solutions Partnership and author of My Electrician Drives a Porsche, he brings new approaches that link topics of energy demand, commodity supply and environmental stewardship.

Quantum Pebble leap: First Quantum enters $1.5B deal for half of Pebble; permitting begins – – by Shane Lasley (Mining News – December 24, 2017)

January 3, 2018

http://www.petroleumnews.com/

In a framework agreement announced on Dec. 18, First Quantum Minerals Ltd. was revealed as the major mining company that will complete the Pebble Limited Partnership.

“We have made good progress in the partnering process and are very pleased to be in advanced-stage discussions with First Quantum, an industry leader in mine development and management,” Ron Thiessen, president and CEO, Northern Dynasty Minerals Ltd., currently the sole owner of the Pebble Partnership.

While the final details of an agreement that will provide First Quantum the option to own half of the Pebble Partnership are being hammered out, the US$1.5 billion preliminary agreement announced on Monday includes a US$150 million investment by First Quantum the will involve four equal payments of US$37.5 million to fund the upcoming permitting process for Pebble.