THE CSA Copper mine has had almost continuous production since 1871 and, owned by Glencore through Cobar Management Pty Ltd, it produces more than 1.1mt of copper, as well as more than 185,000t of copper concentrate per annum at around 27pc copper metal, which is exported to smelters in India, China and South East Asia.
In March of this year, rumours circulated that Aurelia Metals Limited was interested in acquiring CSA Mines.
During Aurelia’s March quarter conference call, the company expressed that CSA could
potentially be a strategic fit and that further consolidation in the Cobar region was attractive following Aurelia’s successful acquisition of Peak gold mine in 2018.
In April Aurelia released a statement confirming that preliminary discussions with CSA had taken place regarding the possibility of a transaction, however in May the company released another statement that it was not continuing its enquiries.
“Contrary to the apparent continuing speculation and commentary in the market, the company wishes to advise that it is no longer in discussions with the owner of CSA Mines regarding the possibility of a transaction,” the statement said.
This is not the first time sale rumours have circulated around the CSA Copper mine.
In 2015 Glencore considered selling the copper operation after receiving a number of unsolicited expressions of interest from potential buyers – but again no progress was made.
The local community in Cobar where the mine operates may have breathed a sigh of relief – about 300 local workers rely on the mine for their livelihood and with a recent drought, consistent mining employment (without any shake-ups that often result from ownership changes) has kept the community afloat.
Cobar mayor councillor Lilliana Brady said she came to Cobar almost 50 years ago and had seen mining change the town.
“We’ve got a mining school here now and in a few years’ time that will be connected to a university so people can study engineering in Cobar,” she said.
While Ms Brady pointed out that mining in a regional town can have its issues, including the tendency for fly-in fly-out workers not spending much money in the local economy, she said that mining was the bread and butter of Cobar.
“The mining companies have always been very good to Cobar, they are very supportive of community events and activities,” she said.
“They take on feedback from the community and have constant information evenings where you can go and ask questions and be part of a mines consultation process.”
CSA Copper often hosts its own community consultations and updates regarding its Mine Operating Plan (MOP).
For the 2018-2020 MOP, CSA plans to mine at a rate of 1.25-1.3Mtpa of copper ore per annum and the current total mineral resource (inclusive of ore reserves at December 2016) sits at 12Mt at 5.55pc copper.
The company expects the current resource will support production for around six years beyond the 2018-20 MOP to around 2026, by which stage the mining school may have attracted more students and eventually mine workers to settle in Cobar.
