Copper Mining News

Entree Gold loses $5.3 million in Q1

Entree Gold said a $5.3 million net loss in the first quarter of 2011 was due to increased exploration activities at its Yerington copper porphyry projects in Nevada. "We are advancing our Yerington projects to development through systematic drilling and upgrading of known deposits and by exploration of additional targets. We have been building our team and operations in Yerington and are strongly encouraged by the initial drilling results we have received. In addition, substantial exploration and development work is underway on our properties in Mongolia," Entree Gold president and CEO Greg Crowe said on Friday.

Quadra FNX and Sumitomo form US$724 million joint venture to develop Sierra Gorda copper-molybdenum project in Chile

Quadra FNX Mining announced on Sunday a US$724 million joint venture with Sumitomo Corporation to develop the Sierra Gorda copper-molybdenum project in Chile. The total cost of the mine is estimated at 2.8 billion and production is scheduled to start in 2014. Sumitomo has a 45% stake in the joint venture; Quadra FNX has 55%. Sierra Gorda is a copper exploration project located in the Atacama Desert, Region II of Chile. According to Quadra FNX's recently completed feasibility study, the production from current sulphide reserves will average 483 M lbs of copper, 25 million lbs of molybdenum, and 64 kozs of gold per annum over a 20-year mine life.

Metals Economics Group Strategic Report: Base metals and gold 2010 acquisitions spending totals $50.7 billion

The 2010 dollar volume of large ($25 million minimum) acquisitions totaled $50.7 billion—the third-highest annual total in 10 years—a whopping increase of 260% over 2009’s $14 billion, and 23% over 2008’s $41 billion. According to Metals Economics Group’s (MEG) recent Strategic Report, the 2010 total signifies a general return of confidence to the industry after a period of significant strategic retrenchment and caution due to the worldwide recession and sharply lower metals prices that began in late 2008 and lasted into early 2010.

Transforming magnetite circuits with the IsaMillTM

IsaMillsTM have been established for over 15 years in base metal grinding circuits, transforming the operations with their energy efficient grinding action. The technology is now being adopted by the iron ore industry, with the first IsaMillTM being planned for commissioning in early 2011 at Xstrata Copper's Ernest Henry Mine's magnetite project in Queensland. Read more

Ivanhoe Mines: Construction of Oyu Tolgoi copper-gold-silver complex advancing toward planned start of commercial production in the first half of 2013.

Overall construction of the Oyu Tolgoi Project was 15.1% complete by the end of Q1'11, slightly ahead of the planned 14.8%. Total capital invested in the project by the end of Q1'11 was $1.8 billion. The Oyu Tolgoi Project initially is being developed as an open-pit operation, with the first phase of mining planned to start at the near-surface Southern Oyu deposits, which include Southwest Oyu and Central Oyu. A copper concentrator plant, related facilities and necessary infrastructure that will support an initial throughput of 100,000 tonnes of ore per day are being constructed to process ore scheduled to be mined from the Southern Oyu open pit. Commercial production of copper-gold-silver concentrate is projected to begin in the first half of 2013.

Net gold and silver long positions cut last week

Speculators in gold, silver and copper futures and options sharply cut their net long positions in the week ended May 10. Metal prices sold off during a commodities rout during the period, according to the latest report by the U.S. Commodity Futures Trading Commission.

Aurelia launches $3 million IPO; funds targetted to Breakaway Dam Copper VMS project

The Directors of Aurelia Resources Limited (ASX:AJU) are pleased to confirm the opening of the company’s Offer Period for an Initial Public Offering (IPO) to raise $3 million, and to undertake a listing on the Australian Securities Exchange (ASX). Listing on the ASX is expected before the end of June 2011. Fifteen million shares are being offered at 20 cents per share and the company may accept subscriptions for a further 5 million shares to raise an additional $1 million. Also, a loyalty option, priced at 1 cent will be offered to shareholders after three months on a 1 for 2 basis. The exercise price is 20 cents with an expiry date of 30 April 2014. Image by Aurelia Resources Limited

Northern Freegold announces $8 million private placement

Northern Freegold Resources announced that it intends to complete a non-brokered private placement of up to 22,857,142 units at a price of $0.35 per unit, for gross proceeds of up to $8 million. Each unit will consist of a common share and a share purchase warrant, each warrant being exercisable to acquire an additional share at $0.45 for 18 months following the closing. Net proceeds from the private placement will be applied towards advancement of the Company's Yukon mineral properties and for general working capital purposes.

Strong gold and PGM revenues see Franco-Nevada Q1 net income up 157%

Franco Nevada reported an adjusted net income of US$21.4 million or 18-cents per share for the first quarter, a 157% increase over the adjusted net income of US$8.3 million or 7-cents per share for the first-quarter 2010. Net income for the first quarter of 2011 was $21.2 million or 18-cents per share, which included a $5.6 million gain, $6.5 million in forex losses and $1.7 million in losses recorded from the equity accounting of Franco's investment in Gold Wheaton prior to the acquisition, which closed on March 14, 201

Copper miner KGHM almost triples Q1 profits

Europe's No.2 copper producer KGHM (KGHM.WA) nearly tripled its net profit in the first quarter, beating expectations thanks to a rally in metal prices. Poland's state-controlled miner said on Friday its bottom line reached 1.96 billion zlotys ($710 million), compared to 1.84 billion seen in a Reuters poll.

Coal and copper led BC miners to profitable 2010

Buoyant prices for coal and copper yielded a profitable year for miners in British Columbia, according to PwC’s annual report on the BC mining industry. PwC partners Michael Cinnamond and Erfan Kazemi presented findings from their report at a press conference on Tuesday, flanked by key representatives of the BC mining industry, including outgoing BC Mining Association president Pierre Gratton, Gavin Dirom, president of the Association of Mineral Explorers BC, and Patty Moore, chair of the Mining Suppliers Association of BC.

Silver fails resistance; all eyes on copper's support

As I mentioned in my previous post on silver, I think the price adjustment in silver will be on-going as several relationships revert to their means (gold and silver miners in particular). However, in the meantime, […]

Ausenco wins C$237 million Gibraltar copper project in Canada

Ausenco has been awarded a Create phase contract to manage the C$237 million expansion of the Gilbraltar copper-molybdenum project in Canada for Taseko Mine. Ausenco’s Minerals & Metals business will manage on an EPCM basis the Gibraltar Development Plan 3 (GDP3) expansion, which will include the construction of a 30,000 t/d concentrator to complement the existing, currently operating, 55,000 t/d facility.

Big Russian base metals company looking at Toronto IPO

Intergeo, the Russian copper and nickel company owned by billionaires Mikhail Prokhorov and Maxim Finskiy, hopes to raise from C$100 million ($104.2 million) to C$500 million in a initial public offering on the Toronto Stock Exchange by the end of the year. Finskiy, the company's chairman and 20 percent stakeholder, told Reuters in an interview on Wednesday the company would float about 10 percent of its shares in the offering.

Caspiche: A mega mine in the making in Chile

The quest to commercialize one of Latin America’s last undeveloped major gold deposits is one major step closer to a prospectively big pay day for its unlikely owner - a small gold explorer named Exeter Resources. A Canadian-headquartered company, Exeter recently completed a major milestone development. It announced a positive metallurgical study for the sprawling Caspiche gold-copper deposit in northern Chile’s gold-rich Maricunga mineral belt.

Lundin Mining betters Q1 net income by $19.3 million

Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) today reported net income of $71.2 million ($0.12 per share) for the first quarter of 2011, an increase of $19.3 million from the $51.9 million ($0.09 per share) for the first quarter of 2010. "Production for the quarter was in-line with guidance and our production outlook for the year is unchanged. It should be noted however, that the production has come at a higher cost owing to lower than expected average head-grade at Neves-Corvo and milling difficulties caused by wet weather in January," said Phil Wright, President and CEO. "Caution also needs to be exercised on cost outlook given the on-going weakness of the US dollar."

Commodity slide likely due to economic concerns

Commodity prices took a beating today. This Bloomberg headline sums it up well: Commodities Sink Most Since 2008 as Stocks Fall. But how can this be? We have been told repeatedly that the surging commodity […]

Copper on a long-term bull run

With metals and commodities on a long-term bull-market run, investors have recently turned their attention to copper. The red metal's price recently has fallen due to mixed economic data. Copper's use as an industrial metal -- it's widely used in buildings, electronics, appliances and automobiles -- makes it sensitive to economic growth prospects.

Freeport McMoRan: trading a tight relationship to copper prices

While some of the silver and gold miners have not been trading in a tight relationship to the precious metals themselves, copper miner Freeport McMoRan (FCX) has been pretty steadily with the price of copper. This chart shows how FCX has traded against copper over the past two years. Although the chart presents the entire two years, I color-coded certain points on the chart to present some additional perspective on how FCX has been trading in specific timeframes.

The Contango Report: silver contango balloons, sugar backwardation disappears

Has oil moved into backwardation yet? What does corn’s roll yield look like? How do you know when it’s time to buy—or sell? Each week, we investigate the futures curves of the U.S.’ most important […]

Why commodities crashed

If you want to see market reporting done right, I can recommend the 2,000-word Reuters special report on Thursday’s commodities crash. It doesn’t just pick a random news event or gesture vaguely at “worries about economic growth” while saying what prices did; it looks at the mechanisms behind the market moves and what might have caused them. It’s worth underlining that Thursday’s percentage declines in commodities like silver and oil would count as a full-on disaster if they occurred in the stock market. Commodities markets are rowdier places than stock markets, however, and the only people who really got hurt are sophisticated investors who can take their medicine.

Outotec to deliver copper flash smelting technology to Iran

Outotec has agreed with Tech Talk company of Dubai on the delivery of flash smelting technology for the expansion of National Iranian Copper Industries Company's copper smelter located in Sarcheshmeh, Iran. Outotec's scope of delivery includes the supervision of detail engineering, supply of proprietary equipment as well as installation supervision and training services. The contract value is approximately EUR 61 million.

OZ Minerals: Conditional settlement of class actions

OZ Minerals has reached an agreement to settle the two class actions brought against it by Maurice Blackburn and Slater & Gordon on behalf of certain shareholders who acquired shares in 2008. The total settlement payment in respect of the class actions is $55.1 million plus costs of $4.9 million with those totals to be allocated between the Maurice Blackburn and the Slater & Gordon classes.

Ausenco wins C$237 million Gibraltar copper project in Canada

Ausenco has been awarded a contract to manage the C$237 million expansion of the Gilbraltar copper-molybdenum project in Canada for Taseko Mine. Ausenco’s Minerals & Metals business will manage on an EPCM basis the Gibraltar Development Plan 3 (GDP3) expansion, which will include the construction of a 30,000 t/d concentrator to complement the existing, currently operating, 55,000 t/d facility.

Baja Mining starts surface mining at Boleo project, Mexico

Baja Mining Corp. (TSX:BAJ) is pleased to announce the commencement of surface mining activities at its 70% owned Boleo copper-cobalt-zinc project ("Boleo"), located near Santa Rosalia, Baja California Sur, Mexico. Beginning in the week commencing May 2, 2011, the Company's surface mining team completed an initial machine operator training program and commenced mining activities to develop the surface facilities and underground mining portals that are scheduled for operation later this year.