• 4 minutes 5 Tweets That Change The World?
  • 7 minutes Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking You Ask ?
  • 11 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 minutes Glory to Hong Kong
  • 6 hours Trump will capitulate on the trade war
  • 11 hours China's Blueprint For Global Power
  • 3 hours The power of propaganda has no boundaries: Which country has larger territory US od China
  • 6 hours Support Held. Back in UGAZ
  • 10 hours Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 13 hours PETROLEUM for humanity 
  • 1 hour Iranian Oil Tanker struck by missiles off Jeddah
  • 4 hours Crazy Stories From Round The World
  • 11 hours ISIS Prisoners Escape Syria Camp After Turkish Shelling. Woohoo!
  • 14 hours How The US Quietly Lost The 1st Amendment
  • 15 hours Leftists crying to make oil patch illegal friendly: 'Broken system' starves U.S. oil boom of immigrant workers: CONGRESS DO YOUR JOBS INSTEAD OF PANDERING!
  • 8 hours China 2019 - Orwell was 35 years out
  • 10 hours Total SA In Expansion: $600 million For India's Adani Gas
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Dave Forest

Dave Forest

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

More Info

Premium Content

Asian Copper Buyers: Hurting Miners?

Several years ago, Asian mining companies were all the buzz.

The idea was that deep-pocketed miners from China, Japan and Korea were going to buy projects around the world. With the aim of securing metal supply for their own domestic use.

This of course, was good for junior development companies, who would receive joint venture deals or buyouts on the prospective projects they had identified around the globe.

It appears such plans have now come to fruition. Executives from major Japanese miner JX Nippon Mining & Metals told Reuters this week that the company is on track to produce 250,000 tonnes of copper from its own mines in 2015. Up significantly from 100,000 in 2012.

The majority of the lift will come from JX's 75%-owned Caserones copper mine in Chile. Slated to begin production late this year, after $3 billion in development spending.

The addition of Caserones production will mean that JX now sources 50% of its copper concentrate needs from its own mines.

Similar events are unfolding for Chinese companies. Major state miner Chinalco is ramping up to begin output from its Toromocho copper mine in Peru (previously purchased from junior developer Peru Copper). Chinese companies are also expected to bid heavily on Glencore Xstrata's Las Bambas copper project in Peru, now up for sale.

The involvement of these producers in the upstream mining business has obviously been good for the sellers of those projects. But for the industry as a whole, there may be some unexpected consequences.

I've mentioned before that treatment and refining charges at copper smelters in China particularly are holding at relatively high levels. In the past, smelters feared charging high processing rates--worried that the mined copper supply they needed would be diverted to more-affordable smelters elsewhere in the world.

But the analysis is that Chinese smelters now feel secure in their supply lines. Captive mines will send copper concentrate home, even at higher treatment charges. So raising rates is acceptable.

That of course is a setback for the rest of the business. Independent miners looking to sell their output now face higher smelting costs, and therefore lower profits.

We'll see if this trend continues. If so, it could be that the Asian appetite for copper is starting to hurt the people we thought it would help.

Here's to a captive audience,

By. Dave Forest




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play