Copper – Page 80 – Republic of Mining

The burrowers: copper mine’s fate hints at light at the end of tunnel for Michigan – by Josh MacIvor-Andersen (The Guardian – April 5, 2017)

April 5, 2017

https://www.theguardian.com/

Greenland, Michigan – The old copper mine entrances dotting the hills of Michigan’s remote Keweenaw peninsula suggest a geological precariousness. It’s the balancing act of all that ancient basalt. You sense the testing of angles and weight.

The pushing of limits. You see the hubris in the dynamited tunnels braced with wooden support beams that seem impossibly feeble. The word “splintered” comes to mind if ever the ceilings were to fail.

At the cold mouth of this particular entrance, gouged into a hill in Greenland, Michigan, there is a robust, grille-like cage cemented into the opening’s circumference, slatted for the bats to go echolocate their dinners, yet stout enough to dissuade the local “copper rats” – the name given to human scavengers searching for mineral scraps to sell for quick cash. The gate is impressive, seemingly impenetrable. But Dave Sarazin, my guide, has the key.

Chile copper industry urged to adopt sweeping changes – by Barbara Lewis and Mitra Taj (Reuters U.S. – April 4, 2017)

April 5, 2017

http://www.reuters.com/

SANTIAGO – The world’s biggest copper producer Chile needs to adopt new technologies and improve labor and community relations in order to maintain its global standing, industry leaders said on Tuesday.

Chile’s copper industry is grappling with falling productivity because much of the country’s best-quality ore has already been mined, although it still accounts for 30 percent of the world’s supply of the metal.

This week Chile hosts the CRU World Copper Conference in Santiago, where the nation’s declining ore grades and a dispute at its biggest mine, Escondida, are offsetting relief that copper prices have recovered from the lows of around $4,300 a tonne a year ago. They remain below $6,000.

Indonesia Allows Exports From Freeport Mine in Stop-Gap Deal – by Yoga Rusmana and Eko Listiyorini (Bloomberg News – April 4, 2017)

April 4, 2017

https://www.bloomberg.com/

Indonesia has issued a temporary mining license to Freeport-McMoRan Inc.’s local unit that will allow the company to resume concentrate exports from the world’s second-largest copper mine after a gap of about 12 weeks.

The permit for Grasberg is valid for eight months from the time that the producer was first offered a special mining license or IUPK in February, Teguh Pamudji, secretary-general at Indonesia’s Energy and Mineral Resources Ministry, told reporters in Jakarta on Tuesday. The government will continue talks with Freeport on a long-term financial stability pact, he said.

A Phoenix-based Freeport spokesman, Eric Kinneberg, reiterated Tuesday that talks to resume exports are continuing. “We are progressing constructive discussions with the government that would enable PT-FI to resume concentrate exports while retaining our contract until a mutually satisfactory replacement agreement is completed,” he said in an email, referring to the Indonesian unit by its initials.

Anglo American aims for copper expansion in Peru, but not yet – by Barbara Lewis and Felipe Iturrieta (Reuters U.S. – April 4, 2017)

April 4, 2017

http://www.reuters.com/

SANTIAGO – Anglo American could begin to expand copper capacity starting in Peru in 2018 after another year without added supplies as the company remains focused on cutting costs, the head of its copper division said in an interview. Copper prices jumped 18 percent in 2016 and have been supported so far this year by strikes and a lack of new capacity.

“All of that has kept the market in almost a neutral position where there wasn’t a surplus,” said Hennie Faul, Anglo American’s chief executive officer for copper. “I couldn’t call it a tight position, but at least it got the prices to stabilize.”

Given a broadly stable copper market and a continued need to shore up the balance sheet following the commodities market crash of 2015 and early 2016, Faul said the company would only look at copper expansion once a decision had been made around year-end on restoring dividends.

Commodity hedge fund Blenheim sees upside in copper, zinc -by Melanie Burton (Reuters U.S. – March 31, 2017)

March 31, 2017

http://www.reuters.com/

Copper and zinc are the two standouts among a brightening outlook for base metals, with supply constraints and China-driven demand set to lift prices in coming months, U.S. commodity hedge fund Blenheim Capital Management said.

After a near six-year downturn that bottomed early last year, industrial metals are being driven more by supply and demand fundamentals than global monetary trends, base metals analyst Ingrid Sternby told Reuters in a rare interview.

The famously private Blenheim sees interest in commodities finally picking up and Sternby said there’s now “a good story to tell.” “We have April ahead of us where usually demand is better. I’d say there is fair chance that we are going to see some better price action ahead. Fundamental stories are promising and I would expect more money coming into the sector,” she said.

Copper capped by hidden supply surge – by Andy Home (Reuters U.S. – March 29, 2017)

March 30, 2017

http://www.reuters.com

LONDON – Has the copper price rally which started so spectacularly late last year run out of momentum? The London Metal Exchange (LME) price, basis three-month delivery, hit a nine-month high of $6,204 per tonne last month, since when it has churned in a broadly directionless range below the $6,000 level.

This is all the more surprising given the severity of the supply-side hits that have been grabbing the headlines. The strike at the world’s largest mine, Escondida in Chile, has ended. But at 43 days it was longer than expected and, factoring in a gradual ramp-up to full production, is going to translate into some 230,000-240,000 tonnes of lost output, analysts reckon.

The world’s second largest mine, Grasberg in Indonesia, is operating at only 40 percent of capacity due to an increasingly acrimonious dispute between operator Freeport McMoRan and the Indonesian government.

Barrick, Goldcorp team up to develop one of world’s largest gold deposits in Chile – by Cecilia Jamasmie (Mining.com – March 28, 2017)

March 28, 2017

http://www.mining.com/

Canada’s Barrick (TSX, NYSE:ABX) and Goldcorp (TSX:G) (NYSE:GG), the world’s No.1 and No.3 producers of the precious metal by value, are teaming up to develop projects in northern Chile, particularly Cerro Casale, one of the world’s largest gold-copper deposits.

As part of the agreement, Barrick has sold a 25% stake in Cerro Casale to Goldcorp, which will result in a 50-50 joint venture focused on building gold mines in Chile’s prolific Maricunga belt.

The move, a fresh sign that miners are moving from cost-cutting to expanding operations and investing in exploration, also prompted Goldcorp to acquire Exeter Resource Corporation (TSX:XRC) for about $250 million. The takeover makes of Goldcorp the sole owner of the Caspiche gold-copper project, conveniently located only 10 km north of Cerro Casale.

Vedanta Resources to invest US$1 billion in Konkola Copper Mines (Mining Review Africa – March 27, 2017)

March 27, 2017

https://www.miningreview.com/

LSE-listed Vedanta Resources has outlined its 50-year vision for mining in the Copperbelt and plans to invest US$1 billion for its next phase of growth. This investment by Vedanta Resources is expected to create 7 000 jobs.

“I want Konkola Copper Mines (KCM) to be the largest integrated copper producer in Africa, the pride of Zambia and Vedanta Resource’s hub for copper and cobalt production in Africa,” sates Vedanta Resources chairman, Anil Agrawal.

“The ramp up of KCM is the centerpiece of my 50-year vision. It’s technically very challenging, because of the massive amount of water we have to pump out of the mine, but I’m determined to find technical solutions,” explains Agarwal. KCM is one of Zambia’s largest integrated copper producers.

Indonesia Wants Control of Freeport’s Grasberg Within Two Years – by Yoga Rusmana and Eko Listiyorini (Bloomberg News – March 23, 2017)

March 31, 2017March 24, 2017

https://www.bloombergquint.com/

(Bloomberg) — The dispute engulfing the world’s second-biggest copper mine deepened as Indonesia’s government said it planned to take a majority stake in the local unit of owner Freeport-McMoRan Inc. within two years while workers at the pit threatened to go on strike.

The state enterprises ministry has cleared a government-run company to buy a majority stake in PT Freeport Indonesia, the local unit that runs the massive Grasberg mine in Papua province, according to Fajar Harry Sampurno, the deputy minister for mining, media and strategic industries. Freeport-McMoran would have to divest its share to a state-owned entity under a new contract that the Phoenix-based miner is yet to sign.

“We’re ready,” Sampurno said at a press conference in Jakarta on Wednesday. A local aluminum producer, PT Indonesia Asahan Aluminium, will be turned into a holding company to purchase the stake, he said. “Once the holding company is formed, they will immediately work on it.”

Peru’s minerals railway to take 2-3 weeks to resume: government – by Mitra Taj (Reuters U.S. – March 22, 2017)

March 24, 2017

http://www.reuters.com/

LIMA – A railway used by copper, zinc and silver mines to transport concentrates from Peru’s central Andes to port is likely be out of action for at least two to three weeks following deadly floods and mudslides, a minister said on Wednesday.

Repairs should take about two weeks, but work in the field was unlikely to start until next week once dangerous river levels had eased, transportation minister Martin Vizcarra told Reuters.

The railway has been closed since Friday, when torrential downpours triggered flooding and mudslides that killed at least 75 people and ruptured the rail line in several places. “The damage wasn’t mild, it was seriously damaged,” Vizcarra said by phone. “It’ll take at least two to three weeks.”

Escondida workers to end strike as they opt for old contract – by Felipe Iturrieta (Reuters U.S. – March 23, 2017)

March 23, 2017

http://www.reuters.com/

ANTOFAGASTA, CHILE – The strike at Chile’s Escondida, the world’s largest copper mine, is ending after workers decided to invoke a rarely used legal provision that allows them to extend their old contract, the union said on Thursday.

Hours earlier, talks between the two sides failed, and Escondida, which is operated by BHP Billiton, said it would attempt to restart production. The workers said they would present their decision to the government on Friday and return to work on Saturday.

A swift restart of Escondida, which produced about 5 percent of the world’s copper last year, may bring some relief to the Chilean economy after a strike that has lasted 43 days. But there was little immediate effect on copper prices, with industry experts saying the two sides will still have to tackle major issues in 18 months, when talks must resume.

BHP Billiton, striking Escondida union to meet Wednesday – by Felipe Iturrieta (Reuters U.K. – March 22, 2017)

March 23, 2017

http://uk.reuters.com/

ANTOFAGASTA, CHILE – The striking union at BHP Billiton’s (BHP.AX)(BLT.L) Escondida copper mine in Chile, the world’s largest, will meet with the company on Wednesday to resume conversations, both parties said on Tuesday night.

In a letter sent to the members of the 2,500-member Escondida union, labour leaders said they would meet with the company in the hopes of putting an end to the 41-day strike, one of the longest in the history of Chilean mining.

A company spokesman confirmed to Reuters that a meeting would take place on Wednesday, adding that the time of the meeting would be coordinated on Wednesday.

Tribunal favours Barrick, Antofagasta in Pakistan lease denial case – by Cecilia Jamasmie (Mining.com – March 21, 2017)

March 22, 2017

http://www.mining.com/

A World Bank’s tribunal has ruled in favour of Tethyan Copper Co. (TCC), a joint venture between Barrick Gold (TSX, NYSE: ABX) and Antofagasta (LON:ANTO), in relation to the denial of a mining lease for the multi-billion-dollar Reko Diq copper and gold reserve in the Pakistani province of Balochistan.

The decision by the International Center for Settlement of Investment Disputes (ICSID), issued on Monday, confirms that Pakistan violated several provisions of its bilateral investment treaty with Australia, where Tethyan Copper is incorporated, Barrick said in a statement. The ruling also rejects Pakistan’s final defense against liability.

The case dates back to 2011, when the provincial government of Balochistan rejected TCC’s application for a mining licence at the remote Reko Diq site, near the Afghan-Pakistan border, even though the firm had been awarded a licence for exploration in the area in 2006.

Resolution mine official calls permitting process a barrier to business – by Dustin Quiroz (Cronkite News Arizona PBS – March 21, 2017)

March 22, 2017

https://cronkitenews.azpbs.org/

WASHINGTON – The Resolution Copper Mine in Arizona would be operating by now in most countries, but is still years away from getting all the permits it needs to begin mining in the U.S., a company official testified Tuesday.

Nigel Steward, managing director of copper and diamonds for Rio Tinto, the multinational mining company developing the Resolution project, told a House Natural Resources subcommittee that “outdated, inefficient” permitting is a “major barrier” to mining companies.

“To date, Rio Tinto has spent over $1.3 billion on the Resolution project for permitting, studies and project shaping, the project is years away from a final permit,” Steward said in his prepared testimony. “In other countries, this project would likely be coming to the end of the permitting process.”

Zambia Copper Miners Face $276 Million Bill in Power Dispute – by Matthew Hill and Taonga Clifford Mitimingi (Bloomberg News – March 20, 2017)

March 21, 2017

https://www.bloomberg.com/

Zambian copper miners including the local unit of Glencore Plc could face a power bill of more than $276 million if they lose a dispute with the government over electricity tariff rises, according to Copperbelt Energy Corp., their biggest supplier.

A resolution to the three-year battle could come by the end of the month, Copperbelt said in its 2016 annual report, published on Friday. If the High Court rules in favor of the energy regulator and its tariff increases, the supplier will be ordered to pay state-owned power producer Zesco Ltd. $276 million in outstanding fees. The company would in turn pass the cost onto customers, Copperbelt said.

A ruling could bring an end to a dispute that has raged in Africa’s second-biggest copper producer since April 2014, when Zambia’s Energy Regulation Board raised tariffs for mining operators by almost 30 percent. The Chamber of Mines of Zambia, which represents the companies, asked the High Court in Lusaka, the capital, to review if the increase was lawful. The regulator again raised prices in January, 2016.