BHP Billiton Mining President Daniel Malchuk stated that the company has not abandoned its sale of its Cerro Colorado copper mine in Chile. At present, the company is still discussing sales with other potential customers. In the gap between the mining exploration and development conference held in Toronto, BHP Billiton in an interview Representing the Melbourne headquarters that this mine sales plan is expected to accelerate within the next few weeks or months. Malchuk also stated that 'BHP Billiton will make concessions on sales prices to ensure that the value of shareholders' interests is not compromised'. Malchuk also called this sale. There will be no specific deadline for the process.
On Tuesday, BHP Billiton shares rose 2.1% in the Sydney stock market. Sales of the Cerro Colorado mine are also part of the CEO Andrew Mackenzie's work plan. Mackenzie wants to shift more investment focus to commodities, such as iron ore, oil, Development of copper. Cerro Colorado is BHP Billiton's smallest mine in Chile. BHP Billiton will be able to raise investment funds once it sells the mine. Secondly, it expects mines to be better developed after the change.
In August of last year, BHP Billiton stated that the sale of the mine was nearing its end, but no news had been updated in the six months since then. The environmental license for the Cerro Colorado mine will expire in 2023. New environmental permits, especially mines The processing and utilization of water resources requires a long period of negotiation before they can be re-enforced. Malchuk stated that 2023 is an important deadline and will affect the price of mine acquisitions.
BHP Billiton is also preparing to negotiate for another Escondida copper mine in Chile's giant copper mine. These negotiations must begin on or before June 1 this year. We also hope that the company can talk with the union as soon as possible. Due to the unsuccessful negotiations with the union last year, the price of copper has risen in the past. Not only miners, but also the Chilean government, have high expectations for the negotiations.
BHP Billiton is also preparing to sell 7 sets of shale assets developed by the company, estimated to be around US$10 billion or more.
Chile will introduce $60 billion in mining investment in 2038
As one of the world’s largest copper producers and lithium suppliers, Chile’s mining minister stated that Chile is expected to attract approximately US$60 billion in new mines and expansion projects in the next 20 years.
According to mining minister Aurora Williams, the country currently invests 15 billion U.S. dollars in the mining industry each year. The government also has an ambitious plan to help more Chilean people participate in the mining industry and benefit from it. The goal of Chile is to create 250 A world-class mining supplier, is expected to export goods worth 10 billion U.S. dollars by the end of the next decade.
In the annual review of the Canadian think tank Fraser Institute, Chile, a country with almost half of the world’s lithium reserves, has topped the world’s top ten mining nations. The country ranks among the best in Latin America, ranking eighth in the world. “In recent years, the nature of the mining industry has changed dramatically. The industry is facing huge challenges,” Williams said. 'Chile hopes to solve these challenges through the development of new mining technologies. The minister stated that some of Chile’s needs to be solved now. Problems include shifting from surface mining to underground mining, improving the efficiency of smelters and refineries, mitigating mine tailings, increasing mine productivity and efficiency, and increasing the efficiency of mineral processing.
Cadia copper may not reach production target
Newcrest stated that the company would not be able to reach its 2018 production target due to the Cadia mine accident.
In January 2018, the company stated that it is expected that the Cadia mine will produce 680-780k oz of gold and approximately 70,000 tons of copper in 2018. The company’s total copper production last year was 83,941 tons.
On Friday, part of the northern dam wall of the Cadia mine in New South Wales, Australia, collapsed into the southern tailings dam. Newcrest immediately suspended all operations of the mine, while the company and provincial government officials independently investigated Institutions have all been involved in investigating collapsed mine dams. As early as before the accident, miners discovered potential problems with mine dams. During regular inspections, workers discovered early on the dam that there was a slight crack, resulting in a decrease in the area of some dams. When the cracks were discovered, the field team quickly hired an independent consultant geotechnical engineer to assist Cadia's geotechnical engineer in the inspection and preliminary evaluation of the embankment.
Currently, Newcrest is reassessing options for underground operations and materials storage at the Cadia mine. It is striving to make progress as soon as possible in finding replacement Cadia mine tailings solutions.
The company is working with regulatory agencies in New South Wales and is building a temporary containment area near the embankment area near the northern tailings facility. The work is progressing smoothly.
Pelambres miners reject latest labor agreement
Los Pelambres copper miners in Antofagasta, Chile rejected the company’s latest collective labor agreement quotation, and 99% of the workers voted to legally strike. The mine’s production last year was 356,000 tons, and the labor contract will expire in June of this year. According to Chile In the Labor Law, it is illegal to strike before the contract has expired. Even if the contract expires, the government can still conduct mediation. Only after the mediation fails can the workers legally strike.
Judging from this market reaction, the long-term sentiment of the market quickly subsided, and the apparent bullish news could not lead to a stabilization after the rebound in copper prices. This indicates that the recent price is indeed weak, and the copper price will still be in a turbulent adjustment pace. There will be Escondida, Spence and in June. Los Pelambres labor contract expires in the three major mines. It is estimated that the total output in 18 years will be 1.835 million tons. It needs to focus on the progress of the contract negotiation and the possible speculation in May-June.
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