Tag: copper

Commodity Focus: Copper

Commodity Focus: Copper

LIKE many of its base metal peers, copper has had a challenging couple of months with its price plummeting more than 15 per cent in the wake of trade tensions between the US and China. However strong mid to long term demand for the red metal – particularly in the bourgeoning electric vehicle market – has analysts optimistic for the year ahead. Will prices recover soon? Elizabeth Fabri spoke with KPMG Copper Commodity leader Maritza Araneda who shares her outlook. Q. Describe how copper has been fairing and reasons for its volatility in recent months? Copper prices are sensitive to shifts in the global economic outlook and in times of uncertainty, prices are volatile. This has certainly been...

Heron Resources: In Full Gear

Heron Resources: In Full Gear

Box cut and mine portal. All images: Heron Resources. BY JESSICA CUMMINS HERON Resources has a lot to celebrate, with underground mining now underway at its flagship Woodlawn zinc-copper project, and commissioning on track to begin by the end of this year. Heron's high-grade Woodlawn project in NSW is a highly prospective zinc-copper deposit, 50km northeast of Canberra. Following the completion of its Feasibility Study in mid-2016, underground mining began at the project in September, with commissioning expected to commence within the next couple of months and first shipment marked for the first quarter of 2019. The high-grade, long-life mine is well placed to participate in a zinc market facing a significant supply shortfall, producing on average 40,000 tonnes...

Resources rush for 2018 and beyond

Resources rush for 2018 and beyond

BY ELIZABETH FABRI AUSTRALIA’S mining sector is set to accelerate through 2018 as strengthened global economics, particularly in China, support commodity prices and underwrite new investment. According to a recent report by S&P Global Market Intelligence, over the next 12 months China will drive continued growth in end-use demand for most base metals through developments such as the ‘One Belt One Road’ initiative. However the report highlighted fears surrounding China’s debt and ability to sustain GDP growth rates (a process that determines the success of large infrastructure spending), but assured macroeconomic improvements were still likely despite the risks. “A key macroeconomic area of support for base metals prices will be through the US dollar, as it moves...

Copper in focus: Cu at the top

Copper in focus: Cu at the top

BY ELIZABETH FABRI COPPER is in favour as demand picks up in China, while electric vehicle and the renewables boom looks to build sustainable price momentum into the future. Yet the base metal, as is the case for many commodities in 2017, has also been defined by its volatility. Will the good time continue? Copper has been a particularly interesting commodity to watch throughout the 2017 year. On the back of sudden price gains in late 2016, the base metal had a volatile start to the year, continuing its upswing in the first few months, (due to supply disruptions at three of the world’s largest mines), before plummeting to three-month lows in April. As analysts predicted, the slump...

Olympic Dam: Major overhaul

Olympic Dam: Major overhaul

Olympic Dam’s copper smelter is getting a $350 million upgrade. All images: BHP. BY CAMERON DRUMMOND AS it prepares to mine the “body of the guitar” at Olympic Dam – representing an incredible 70 per cent of the resource footprint – BHP is forging ahead with $600 million of expansions and upgrades. Undeterred by an 18 per cent decrease in annual copper output due to state-wide power outages during September and October last year, BHP’s Olympic Dam is undergoing its biggest expansion and maintenance program since the Big Aussie purchased the mine from Western Mining Corporation in 2005. In 2011, BHP released a supplementary Environmental Impact Statement into a gigantic open pit expansion at Olympic Dam. Operating simultaneously with the...

$350m for Olympic Dam upgrade

$350m for Olympic Dam upgrade

The planned shutdown was the largest BHP has undertaken in South Australia. Image: BHP. BY CAMERON DRUMMOND BHP has announced a $350 million investment to upgrade its Olympic Dam copper smelting operation. Olympic Dam asset president Jacqui McGill said the smelter maintenance campaign was the largest planned shutdown by BHP in South Australia. The smelter campaign involves a combined investment in three key areas; a rebuild of the smelter flash furnace, demolition and construction of a new electric slag furnace; and the removal and replacement of the five-story high electro static precipitator. BHP said it would also use the planned downtime to undertake further refinery asset maintenance. “There will be 1300 contractors at Olympic Dam during the peak of construction...

Heron awards $107m EPC contract at Woodlawn

Heron awards $107m EPC contract at Woodlawn

The Woodlawn zinc-copper project site near Tarago, NSW. Image: Heron Resources. BY CAMERON DRUMMOND MULTI-commodity focused explorer Heron Resources has awarded a $107m contract for the development of its Woodlawn zinc-copper project in NSW. The engineering, procurement and construction contract (EPC) went to CIMIC Group subsidiary Sedgman for the development of a 1.5 million tonnes per annum mineral processing plant that would produce zinc, copper and lead concentrates. The design also included a backfill plant and supporting infrastructure at the project located near Tarago, 250km southwest of Sydney. More than 250 personnel would be employed at the peak of construction. Heron Resources managing director Wayne Taylor said the contract award followed the successful undertaking of a...

MMG: Global ambition

MMG: Global ambition

Mining at Kinsevere in the Democratic Republic of Congo. By Cameron Drummond AFTER the record breaking purchase of the Las Bambas copper project in Peru, MMG has had a reasonably quiet 18 months consolidating and improving existing projects. MMG Limited is a Chinese-owned (China Minmetals 74 per cent) mining consortium listed on the Hong Kong Stock Exchange and ASX with copper, zinc and other base metal projects across four continents. MMG aims to become one of the top mid-tier miners by 2020 by investing in significant exploration and development projects such as the Las Bambas copper operation in Peru, aquired from Swiss-based miner Glencore for $US5.85 billion in 2014. The company also owns the Sepon and Kinsevere copper mines in Southern...

Ernest Henry: Community focus

Ernest Henry: Community focus

After completing a $589 million upgrade Glencore’s Ernest Henry Mining, has continued its support for local and regional projects near its operations. By Cameron Drummond ERNEST HENRY is a copper and gold mining and processing operation 38km north east of Cloncurry in north-west Queensland. The mine is a part of Glencore’s portfolio of Australian copper assets which includes the Mount Isa Mines copper operations, a copper refinery in Townsville and the CSA underground copper mine near Cobar, NSW. Mined copper and gold at Ernest Henry is processed at its on-site concentrator then transported to Glencore’s Mount Isa copper smelter and refined at the Townsville refinery, ready to be delivered to domestic and overseas customers. In its 2015 annual report, Glencore earnings before taxes, depreciation...

BHP boosts copper and oil exploration spend

BHP boosts copper and oil exploration spend

BHP Billiton's Shenzi operations in the Gulf of Mexico. By Elizabeth Fabri BHP Billiton’s will increase exploration expenditure to $US900 million in the next financial year, accounting for 18 per cent of its overall capital budget. A value-focused approach to exploration was announced on 27 June at Citigroup’s Mining Exploration Day in Sydney by BHP Billiton head of geoscience Laura Tyler, who outlined the company’s plan to enhance its tier 1 portfolio by focusing on copper and oil. “We are investing at a time when most in our sector continue to reduce discretionary spend,” Ms Tyler said. “We are also challenging existing paradigms with a scientific based and disciplined approach to exploration. “We have reduced exploration operating costs by 70 per cent since...

The Interview: Richard Bevan

The Interview: Richard Bevan

23 June, 2015 SINCE listing on the ASX three years ago, Cassini Resources has been on a mission to fast track its Nebo-Babel development in the relatively under-explored West Musgrave area of WA. Managing director Richard Bevan spoke to Rachel Dally-Watkins about the company’s flagship project and its success to date. Q. What is your educational background and how did you get started in the mining industry? A. My background is not that conventional. I actually started in the healthcare profession, so my original educational background is a Bachelor of Science in Physiotherapy. I was part of a healthcare business that was listed on the stock exchange, and since that time I’ve done some management studies and also a range...