• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 12 hours Satellite Moons to Replace Streetlamps?!
  • 35 mins U.S. Shale Oil Debt: Deep the Denial
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 1 day EU to Splash Billions on Battery Factories
  • 9 hours The Dirt on Clean Electric Cars
  • 6 hours Owning stocks long-term low risk?
  • 13 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 24 hours The end of "King Coal" in the Wales
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

A “Perfect Opportunity” To Scoop Up Mining Assets On The Cheap Here

Copper prices have hit their lowest levels in 6 years the last few weeks.

For many players in the industry that's triggered cutbacks in production and mine investment. But at least one major copper miner sees the current downturn as a "perfect opportunity."

That's Japanese integrated producer Sumitomo, which said this week it is actively seeking new copper projects globally -- and probably more than one or two.

As reported by Reuters, Sumitomo's president Yoshiaki Nakazato told a news conference Tuesday that the firm is on good financial footing, and looking to make acquisitions in the copper space. "We have a perfect opportunity now to make use of strength and pursue good deals that would benefit us in future," he noted. Related:  OPEC’s Bad Bet By The Numbers

And Sumitomo's M&A plans are ambitious. With the company saying it wants to nearly double its copper production in a very short period of time.

President Nakazato told reporters that Sumitomo is seeking to increase its copper output to 300,000 tonnes yearly, by 2021. Today the company produces just 175,000 tonnes of annual copper -- implying a jump of 125,000 tonnes of yearly capacity over the next six years.

That sort of growth would likely require Sumitomo to acquire at least a couple of major mining projects. And perhaps up to four or five operations -- which would make the company one of the largest buyers of copper projects seen during the current downturn. Related: Why French Military Action In Syria Doesn’t Affect Oil Prices

One of the key questions is: where will they look?

Most of the company's recent moves in copper mining have come in South America, where it bought a stake in Peru's Sierra Gorda mine in 2011 and the Cerro Verde project in 2004, as well as Chile's Candelaria mine in 2005.

That makes the continent a logical place for Sumitomo to shop further -- although the company also has interests in copper mines in Indonesia, Australia and Arizona. Developers in all of these places who are seeking funding or a project sale should take note.

Here's to going on the hunt,

Dave Forest

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News