Indicative of the extent of the expected fall in the price of iron ore, Fortescue Metals is now selling ore for 30 per cent less than last year's benchmark price because no settlement was reached before the start of the Japanese financial year on Wednesday.
"Regardless of what price we sell it at today, it will be adjusted to benchmark price when (negotiations are) concluded and therefore adjusted back to the beginning of April," said a Fortescue executive director, Graeme Rowley, yesterday.
Most analysts expect the iron ore price will fall by 30 per cent to 40 per cent this year after reaching a record high last year.
Brazil's Vale, the traditional price-setter, last month said it would wait for Rio Tinto or BHP Billiton to reach the first benchmark settlement this year.
BHP has been pushing for steel makers to accept an index system rather than a benchmark price, but Mr Rowley predicted BHP would be the price-setter this year since Rio "won't want to upset China" in light of a proposed $US19.5 billion ($A28 billion) investment deal with Chinalco.
"I think BHP will settle," he said. "And they will settle a benchmark." Merrill Lynch analyst Tom Price this week gave the same assessment, predicting BHP would reach the first settlement with Japanese steel makers or China's Baosteel.
"While indices now exist for iron ore, they only cover a tiny trade," Mr Price said. "So BHP may need to work with the benchmark price mechanism for several years yet."
Fortescue, which sells all its ore to China, has already admitted selling some below benchmark prices now since the spot price fell below the contract price in the fourth quarter of last year.
Mr Rowley said Japanese and Korean steel makers had honoured their contracts, but their Chinese counterparts had pushed for lower prices.
He said European steel makers had recently expressed interest in Fortescue's lump product because of a shortage of the material in Brazil, but no sales agreements had been reached.
Fortescue should have a stronger balance sheet soon after the Federal Government this week granted approval for a $645 million equity injection from Chinese steel maker Hunan Valin Iron & Steel.
Mr Rowley said that would clear the way for Fortescue to gain access to more financing from China to fund expansion plans, possibly from China Investment Corp or China Exim Bank.
He said the structure of any deal would be restricted by the terms of its outstanding bonds, but one possible structure would be for the Chinese to take a 40 per cent stake in its Solomon deposits that would be mined in an expansion.
BHP is expanding its iron ore operations and Rio is seeking to resume its own plans with funding from China.
Source: The Age, Melbourne
Friday, April 3, 2009
Patriot Idls Two More Mines
Patriot Coal said on Thursday that it plans to idle two more West Virginia mines, cut production at a third and defer startup plans at a fourth.
Patriot said it plans to idle two contract mines serving its Wells complex, eliminate Saturday workdays at its Hobet complex and delay production startup at its newly developed Blue Creek complex until “the markets recover.” All four complexes are located in West Virginia.
These cuts will reduce the company’s 2009 production by 2 million tons.
"In the near-term, coal markets remain weak,” Patriot Chief Executive Officer Richard Whiting said in a statement. “As a result, we have taken actions to further reduce our 2009 production, essentially eliminating uncommitted tons from our production plans.”
When coal markets rebound, Patriot will reopen the idled facilities, he said.
These closures come on the heels of Patriot idling two other coal mines in West Virginia and laying off 400 workers in January.
Creve Coeur-based Patriot Coal Corp. (NYSE: PCX) is the third-largest producer and marketer of coal in the eastern United States, with 16 mining complexes in Appalachia and the Illinois Basin.
Source: St Louis Business Journal
Patriot said it plans to idle two contract mines serving its Wells complex, eliminate Saturday workdays at its Hobet complex and delay production startup at its newly developed Blue Creek complex until “the markets recover.” All four complexes are located in West Virginia.
These cuts will reduce the company’s 2009 production by 2 million tons.
"In the near-term, coal markets remain weak,” Patriot Chief Executive Officer Richard Whiting said in a statement. “As a result, we have taken actions to further reduce our 2009 production, essentially eliminating uncommitted tons from our production plans.”
When coal markets rebound, Patriot will reopen the idled facilities, he said.
These closures come on the heels of Patriot idling two other coal mines in West Virginia and laying off 400 workers in January.
Creve Coeur-based Patriot Coal Corp. (NYSE: PCX) is the third-largest producer and marketer of coal in the eastern United States, with 16 mining complexes in Appalachia and the Illinois Basin.
Source: St Louis Business Journal
Thursday, April 2, 2009
Flinders Announces Hamersley Maiden Resource
A maiden iron ore resource estimate of 476 million tonnes has been announced by Flinders Mines Limited for its 100% owned Hamersley project in Western Australia.
Flinders Mines Limited said that exploration drilling in the close vicinity scheduled from May is expected to rapidly add to that figure, targeting up to a further 260 million tonnes of the shallow iron ore deposit.
The JORC compliant Inferred Resource comprises 476 million tonnes of iron ore at a grade of 55.2% Fe, including priority zones of 124 million tonnes of iron ore grading above 58.3% Fe.
The independently assessed JORC compliant resource estimate was derived from a major drilling campaign across 4 of 5 key prospects on Flinders 100% owned E47/882 license an area sandwiched between Rio Tinto's new Caliwingina North iron ore discovery and Fortescue Metals Group Serenity iron ore project. The drill campaign comprised an extensive 300 hole, 15,000 meters program which confirmed the presence of extensive hematite dominant Channel Iron Deposits, as well as high grade goethite dominant Bedded Iron Deposits lying beneath the CID.
Mr Bob Kennedy chairman of Flinders Chairman said that "The resource estimate continues to underline the reputation of Western Australia's Pilbara region as the country's premier iron ore province."
Mr Kennedy said that "Secondly, the fact that the resource is of such high quality, so close to surface and so close to existing world class ore export infrastructure, delivers considerable project upside very early in the life of our development plans for the Hamersley."
Mr Kennedy said that "After an expenditure of USD 8 million and 8 months of exploration, we can finally confirm what we have always suspected that the Hamersley project contains an outstanding iron ore resource."
Flinders has commenced a scoping study to assess development options for the 112 square kilometers Hamersley project, leading into a Prefeasibility Study later this year and a Feasibility Study in 2010.
The JORC compliant Inferred Resource was prepared by independent geological consultancy, Golder Associates Private Limited, based upon data collated and interpreted by Flinders staff.
Source: Steel Guru
Flinders Mines Limited said that exploration drilling in the close vicinity scheduled from May is expected to rapidly add to that figure, targeting up to a further 260 million tonnes of the shallow iron ore deposit.
The JORC compliant Inferred Resource comprises 476 million tonnes of iron ore at a grade of 55.2% Fe, including priority zones of 124 million tonnes of iron ore grading above 58.3% Fe.
The independently assessed JORC compliant resource estimate was derived from a major drilling campaign across 4 of 5 key prospects on Flinders 100% owned E47/882 license an area sandwiched between Rio Tinto's new Caliwingina North iron ore discovery and Fortescue Metals Group Serenity iron ore project. The drill campaign comprised an extensive 300 hole, 15,000 meters program which confirmed the presence of extensive hematite dominant Channel Iron Deposits, as well as high grade goethite dominant Bedded Iron Deposits lying beneath the CID.
Mr Bob Kennedy chairman of Flinders Chairman said that "The resource estimate continues to underline the reputation of Western Australia's Pilbara region as the country's premier iron ore province."
Mr Kennedy said that "Secondly, the fact that the resource is of such high quality, so close to surface and so close to existing world class ore export infrastructure, delivers considerable project upside very early in the life of our development plans for the Hamersley."
Mr Kennedy said that "After an expenditure of USD 8 million and 8 months of exploration, we can finally confirm what we have always suspected that the Hamersley project contains an outstanding iron ore resource."
Flinders has commenced a scoping study to assess development options for the 112 square kilometers Hamersley project, leading into a Prefeasibility Study later this year and a Feasibility Study in 2010.
The JORC compliant Inferred Resource was prepared by independent geological consultancy, Golder Associates Private Limited, based upon data collated and interpreted by Flinders staff.
Source: Steel Guru
Chinese Steel Industry Q1 Loss Will "Exceed CNY10 Billion"
Speculation in China suggests that they gross profit per tonne of steel tonnage manufactured by the Chinese steel industry was less than CNY 100 per tonne in March. TX Investment Consulting speculates the combined loss for domestic steel producers in Q1 would exceed CNY 10 billion.
As per TX's report, in the first two months of this year gross profit for domestic ferrous metal smelting and rolling posted a loss of CNY 769 million down by 103.02% from a year ago and that for ferrous metal mining & dressing also fell 65.84% YoY to CNY 2.34 billion.
According to figures released by the Statistics Bureau the falling profits of the two industries indicate an overall steel industrial loss, with the falling range far exceeding the averaged 37.3% total profit drop for China's above-scale industrial enterprises. The further profit deterioration is due primarily to flagging demand. Statistics show that prices for coking coal in the first two months have fallen to CNY 1,200 per tonne lower than the same period of last year.
Profit growth for steelmaking down-stream sectors also turned negative in the period; of which transport & communication facilities manufacturing records the sharpest drop to negative 40.4% from 15.7% posted in last November. That for universal equipment manufacturing and specialized equipment manufacturing fell to minus 4.43% and minus 13.4% respectively from last November 20.36% and 9.4%.
The faltering demand also prolonged steel mills' destocking circle. China's steel inventories have mounted up week on week since January with stockpiles for flat and long products hitting 5.46 million tonnes and 5.87 million tonnes respectively by the end of February.
Source: Steel Guru
As per TX's report, in the first two months of this year gross profit for domestic ferrous metal smelting and rolling posted a loss of CNY 769 million down by 103.02% from a year ago and that for ferrous metal mining & dressing also fell 65.84% YoY to CNY 2.34 billion.
According to figures released by the Statistics Bureau the falling profits of the two industries indicate an overall steel industrial loss, with the falling range far exceeding the averaged 37.3% total profit drop for China's above-scale industrial enterprises. The further profit deterioration is due primarily to flagging demand. Statistics show that prices for coking coal in the first two months have fallen to CNY 1,200 per tonne lower than the same period of last year.
Profit growth for steelmaking down-stream sectors also turned negative in the period; of which transport & communication facilities manufacturing records the sharpest drop to negative 40.4% from 15.7% posted in last November. That for universal equipment manufacturing and specialized equipment manufacturing fell to minus 4.43% and minus 13.4% respectively from last November 20.36% and 9.4%.
The faltering demand also prolonged steel mills' destocking circle. China's steel inventories have mounted up week on week since January with stockpiles for flat and long products hitting 5.46 million tonnes and 5.87 million tonnes respectively by the end of February.
Source: Steel Guru
Vale Acquires Colombian Coal Assets
Brazilian mining giant Vale said on Wednesday it had completed the acquisition of coal assets in Colombia for $305.8 million.
The assets include El Hatillo coal mine, the Cerro Largo coal deposit, a minority stake in the Fenoco consortium that operates a railroad linking coal mines to a port, and the concession of the Rio Cordoba-SPRC port on Colombia's Caribbean coast.
All assets were bought from Cementos Argos S.A., Vale said in a statement.
Vale, which still gets most of its revenue from iron ore, is seeking to build a coal asset platform in Colombia, the world's third-biggest exporter of high-quality thermal coal.
Vale already has coal operations in Australia and is involved in two joint ventures in China that own a coal mine and a coke plant. The Brazilian company is also developing a large coal project in Mozambique.
Source: Reuters
The assets include El Hatillo coal mine, the Cerro Largo coal deposit, a minority stake in the Fenoco consortium that operates a railroad linking coal mines to a port, and the concession of the Rio Cordoba-SPRC port on Colombia's Caribbean coast.
All assets were bought from Cementos Argos S.A., Vale said in a statement.
Vale, which still gets most of its revenue from iron ore, is seeking to build a coal asset platform in Colombia, the world's third-biggest exporter of high-quality thermal coal.
Vale already has coal operations in Australia and is involved in two joint ventures in China that own a coal mine and a coke plant. The Brazilian company is also developing a large coal project in Mozambique.
Source: Reuters
Ivanhoe Claims Congo Copper Discovery
Ivanhoe Nickel & Platinum, the African-focused metals explorer controlled by financier Robert Friedland, said on Wednesday it had made a copper discovery "of historic importance" in the Democratic Republic of Congo.
In a statement obtained by Reuters at the CRU/CESCO copper conference in Santiago, Friedland said drilling had uncovered "laterally continuous, sediment-hosted, high-grade stratiform copper mineralization in a newly discovered copper district that forms a previously unrecognized western extension of the famous Central African Copper Belt."
The Central African Copper Belt is host to several world-class
properties, including Freeport-McMoRan's Tenke-Fungurume deposit.
Friedland said the company is in confidential discussions with "a
carefully selected number of the world's leading, private and state-owned
international mining companies" to form a partnership to develop the
project.
Friedland is best known for discovering the massive Voisey's Bay nickel
deposit in eastern Canada. He also controls Ivanhoe Mines, which
is developing the massive Oyu Tolgoi copper/gold deposit in Mongolia in
partnership with Rio Tinto.
Source: Reuters
In a statement obtained by Reuters at the CRU/CESCO copper conference in Santiago, Friedland said drilling had uncovered "laterally continuous, sediment-hosted, high-grade stratiform copper mineralization in a newly discovered copper district that forms a previously unrecognized western extension of the famous Central African Copper Belt."
The Central African Copper Belt is host to several world-class
properties, including Freeport-McMoRan's Tenke-Fungurume deposit.
Friedland said the company is in confidential discussions with "a
carefully selected number of the world's leading, private and state-owned
international mining companies" to form a partnership to develop the
project.
Friedland is best known for discovering the massive Voisey's Bay nickel
deposit in eastern Canada. He also controls Ivanhoe Mines, which
is developing the massive Oyu Tolgoi copper/gold deposit in Mongolia in
partnership with Rio Tinto.
Source: Reuters
Wednesday, April 1, 2009
Pan American Begins Silver Production At Bolivian Mine
Vancouver-based Pan American Silver has begun producing silver and zinc concentrates at its San Vincente mine, in Bolivia, the firm announced on Wednesday.
Pan American owns 95% of the mine and the balance is held by a State-owned company.
The company decided to build its own processing facility at the mine and ramp up throughput rates, after discovering a high-grade Litoral vein system.
Before that, ore was trucked to a small third-party mill for processing.
Pan American started commissioning the new 750 t/d facility in mid-January, and expects San Vicente to reach design capacity “within the next few months”.
At full capacity, the mine is expected to contribute just less than 3-million ounces a year to Pan American's production profile.
Altogether, the company, which also officially opened its Manantial Espejo mine, in Argentina, last month, expects to produce 21,5-million ounces of silver this year, at cash costs of $6,28/oz.
Source: Mining Weekly
Pan American owns 95% of the mine and the balance is held by a State-owned company.
The company decided to build its own processing facility at the mine and ramp up throughput rates, after discovering a high-grade Litoral vein system.
Before that, ore was trucked to a small third-party mill for processing.
Pan American started commissioning the new 750 t/d facility in mid-January, and expects San Vicente to reach design capacity “within the next few months”.
At full capacity, the mine is expected to contribute just less than 3-million ounces a year to Pan American's production profile.
Altogether, the company, which also officially opened its Manantial Espejo mine, in Argentina, last month, expects to produce 21,5-million ounces of silver this year, at cash costs of $6,28/oz.
Source: Mining Weekly
Grupo Mexico Boosts Southern Copper Stake
Grupo Mexico said on Wednesday it had raised its shareholding in Southern Copper to 80 percent from 75.1 percent.
Grupo Mexico said it bought 16.7 million shares of Southern Copper and Southern Copper repurchased an additional 33.4 million shares. The average price paid in both transactions was $13.45 per share.
Source: Reuters
Grupo Mexico said it bought 16.7 million shares of Southern Copper and Southern Copper repurchased an additional 33.4 million shares. The average price paid in both transactions was $13.45 per share.
Source: Reuters
Cliffs To Boost Iron Ore Production At Michigan Mines
Cliffs Natural Resources Inc. plans to boost production of iron ore pellets at its Michigan operations above previously announced levels.
The company says production at its Empire and Tilden mines in Marquette County will increase by more than 600,000 tons, to a projected total of 7.3 million tons.
But Dale Hemmila, a spokesman for Cleveland-based Cliffs, cautioned that the increased production doesn't reflect a turnaround in the domestic steel industry.
Hemmila tells The Mining Journal of Marquette the increase will allow the company to drop previously announced plans to shut down the Empire mine for seven weeks and the Tilden Mine for 26 days over the summer, keeping more than 1,200 workers on the job.
Approximately 370 workers were laid off earlier this year.
Source: Chicago Tribune
The company says production at its Empire and Tilden mines in Marquette County will increase by more than 600,000 tons, to a projected total of 7.3 million tons.
But Dale Hemmila, a spokesman for Cleveland-based Cliffs, cautioned that the increased production doesn't reflect a turnaround in the domestic steel industry.
Hemmila tells The Mining Journal of Marquette the increase will allow the company to drop previously announced plans to shut down the Empire mine for seven weeks and the Tilden Mine for 26 days over the summer, keeping more than 1,200 workers on the job.
Approximately 370 workers were laid off earlier this year.
Source: Chicago Tribune
Peabody Renogiates Mongolian Coal Deal
Peabody Energy said Tuesday it has entered into a renegotiated agreement to create a 50-50 joint venture holding Polo Resources Ltd.’s Mongolian coal interests for up to $25.8 million.
This option agreement supersedes the agreement announced in January, in which Peabody obtained an option to purchase up to a 50 percent interest in the joint venture for $73.2 million.
Polo's Mongolian coal interests have a potential resource of more than one billion tons in a region with some of the largest metallurgical and thermal coal resources in close proximity to the high-demand China and Asian markets. Polo has an active mining operation in Mongolia, with more than 100 employees on-site.
Peabody recently named D.L. Lobb its senior vice president of Mongolian operations.
Peabody has also been granted warrants to enable the company to acquire an approximate 15 percent equity interest in Polo Resources Ltd.
Polo, based in Road Town, British Virgin Islands, buys and develops advanced-stage coal and uranium properties in Asia and Australia.
St. Louis-based Peabody is the world's largest private-sector coal company. Its coal products fuel about 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity.
Peabody is the world's largest private-sector coal company. Its coal products fuel 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity.
Source: St Louis Business Journal
This option agreement supersedes the agreement announced in January, in which Peabody obtained an option to purchase up to a 50 percent interest in the joint venture for $73.2 million.
Polo's Mongolian coal interests have a potential resource of more than one billion tons in a region with some of the largest metallurgical and thermal coal resources in close proximity to the high-demand China and Asian markets. Polo has an active mining operation in Mongolia, with more than 100 employees on-site.
Peabody recently named D.L. Lobb its senior vice president of Mongolian operations.
Peabody has also been granted warrants to enable the company to acquire an approximate 15 percent equity interest in Polo Resources Ltd.
Polo, based in Road Town, British Virgin Islands, buys and develops advanced-stage coal and uranium properties in Asia and Australia.
St. Louis-based Peabody is the world's largest private-sector coal company. Its coal products fuel about 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity.
Peabody is the world's largest private-sector coal company. Its coal products fuel 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity.
Source: St Louis Business Journal
WISCO To Supply Nissan With Cold-Rolled Steel
Wuhan Iron and Steel Co, one of the leading iron and steel makers in China, was selected last Thursday to supply cold-rolled steel products to Nissan Motor Co Ltd, Japan's third largest automaker, sources reported.
Next month, Wuhan Iron & Steel will begin to supply Nissan with alloyed galvanized plate, which will be used in the Japanese car maker's products.
Last July, Nissan evaluated Wuhan Iron & Steel based on the Alliance Supplier Evaluation Standard (ASES), to determine whether the quality management of the Chinese steel maker satisfies Nissan's criteria.
Although Wuhan Iron & Steel initially failed the examination, the company improved the overall system as required by ASES and passed Nissan's assessment at the beginning of 2009.
Furthermore, the Chinese steel maker made progress in the silicon steel sheet cold rolling technology and expanded the related production line from 36 to 150 models.
Source: China Knowledge
Next month, Wuhan Iron & Steel will begin to supply Nissan with alloyed galvanized plate, which will be used in the Japanese car maker's products.
Last July, Nissan evaluated Wuhan Iron & Steel based on the Alliance Supplier Evaluation Standard (ASES), to determine whether the quality management of the Chinese steel maker satisfies Nissan's criteria.
Although Wuhan Iron & Steel initially failed the examination, the company improved the overall system as required by ASES and passed Nissan's assessment at the beginning of 2009.
Furthermore, the Chinese steel maker made progress in the silicon steel sheet cold rolling technology and expanded the related production line from 36 to 150 models.
Source: China Knowledge
Mugabe Orders Zimbabwe Ferrochrome, Steel Production
Zimbabwean President Robert Mugabe President of Zimbabwe has visited the Kwekwe district of the country and expressed his anxiety regarding the suspension of operations at both Zimasco and Ziscosteel.
Mr Mugabe has instructed officials to commence measures leading to the resumption of operations in April. Zimasco has stocked 70,000 tonnes of chrome ore and said that, as soon as the world market of ferrochrome has recovered, the Kwekwe plant will resume producing ferrochrome.
Although it is not known when either Zimasco or Ziscosteel suspended their operations, the government said that these shutdowns are due to sanctions imposed by western world and the recession in the world economy from the autumn of 2008.
Zimbabwe has also been suffering from a serious shortage of electric power for a long time and this has had a negative impact on the production of ferrochrome, nickel, platinum and steel, which are major industries in the country.
Source: Steel Guru
Mr Mugabe has instructed officials to commence measures leading to the resumption of operations in April. Zimasco has stocked 70,000 tonnes of chrome ore and said that, as soon as the world market of ferrochrome has recovered, the Kwekwe plant will resume producing ferrochrome.
Although it is not known when either Zimasco or Ziscosteel suspended their operations, the government said that these shutdowns are due to sanctions imposed by western world and the recession in the world economy from the autumn of 2008.
Zimbabwe has also been suffering from a serious shortage of electric power for a long time and this has had a negative impact on the production of ferrochrome, nickel, platinum and steel, which are major industries in the country.
Source: Steel Guru
Japan Refined Zinc Stocks Down In February
Japan's inventories of refined zinc fell 2.6% on month in February to 37,344 metric tons, according to preliminary data released by the Ministry of Economy, Trade and Industry.
The inventories were more than double the 17,867 tons in February 2008
Output at Japanese zinc smelters fell 25% on month and 18% on year to 42,031 tons.
Japan's zinc shipments for February were down 13% on month and 11% on year at 15,666 tons.
Source: Dow Jones
The inventories were more than double the 17,867 tons in February 2008
Output at Japanese zinc smelters fell 25% on month and 18% on year to 42,031 tons.
Japan's zinc shipments for February were down 13% on month and 11% on year at 15,666 tons.
Source: Dow Jones
Sumitomo Plans On Small Increase In Copper Production
Sumitomo Metal Mining Co Ltd, Japan's second largest copper smelter, said on Wednesday it plans to produce 401,000 tonnes of copper in the year to end March 2010, up 1.8 percent from its plan a year earlier.
The company had cut back production since the beginning of the year as the economic crisis erodes demand for the industrial metal which is used in the electric power and construction industries.
It said in statement that sales conditions remain tough, but that it has decided to keep production in the new business year largely unchanged from its year-earlier plan.
Sumitomo Mining is Japan's top nickel producer.
Source: Reuters
The company had cut back production since the beginning of the year as the economic crisis erodes demand for the industrial metal which is used in the electric power and construction industries.
It said in statement that sales conditions remain tough, but that it has decided to keep production in the new business year largely unchanged from its year-earlier plan.
Sumitomo Mining is Japan's top nickel producer.
Source: Reuters
Tenke Fungurume Begins Copper Production
The Tenke Fungurume copper/cobalt project, in the Democratic Republic of Congo, has attracted more than its fair share of naysayers, many of whom questioned the almost $2-billion being poured into the project by its North American owners.
But it seems that Phoenix-based Freeport-McMoRan Copper & Gold and its minority partner Lundin Mining may have the last laugh, now that the operation has produced its first copper cathode and the initial plant is on schedule to reach its full production rate during the second half of this year, according to a report from Lundin.
Freeport operates the project and owns an effective 57,75% stake, while Toronto-based Lundin holds 24,75% and DRC State-owned miner Gecamines owns the balance.
The project's initial high-grade oxide ore facilities have been designed to produce about 115 000 t/y of copper cathode and 8 000 t/y of cobalt.
The ramp up of copper production will continue over the next several months in parallel to completion of the cobalt circuit and acid plant, Lundin said in a statement.
The achievement of first production also comes on the heels of a report by Bloomberg News that the DRC government has agreed not to push for any significant changes to the mining contract for Tenke Fungurume.
Like other operations in the country, the asset has been subject to a review of the contract between the government and the international investors in the mine.
Freeport and Lundin have maintained throughout the process that the contract was negotiated transparently and legitimately, and would hold up to legal scrutiny.
Source: Mining Weekly
But it seems that Phoenix-based Freeport-McMoRan Copper & Gold and its minority partner Lundin Mining may have the last laugh, now that the operation has produced its first copper cathode and the initial plant is on schedule to reach its full production rate during the second half of this year, according to a report from Lundin.
Freeport operates the project and owns an effective 57,75% stake, while Toronto-based Lundin holds 24,75% and DRC State-owned miner Gecamines owns the balance.
The project's initial high-grade oxide ore facilities have been designed to produce about 115 000 t/y of copper cathode and 8 000 t/y of cobalt.
The ramp up of copper production will continue over the next several months in parallel to completion of the cobalt circuit and acid plant, Lundin said in a statement.
The achievement of first production also comes on the heels of a report by Bloomberg News that the DRC government has agreed not to push for any significant changes to the mining contract for Tenke Fungurume.
Like other operations in the country, the asset has been subject to a review of the contract between the government and the international investors in the mine.
Freeport and Lundin have maintained throughout the process that the contract was negotiated transparently and legitimately, and would hold up to legal scrutiny.
Source: Mining Weekly
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