• 3 hours OPEC, Russia Said To Announce Oil Pact Extension On Nov 30
  • 6 hours Wintershall And LetterOne In Talks For $12B Oil, Gas Merger
  • 8 hours India Exempts State Oil Firms Mergers From Competition Approval
  • 10 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 12 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 13 hours OPEC Set To Move Fast On Cut Extension Decision
  • 16 hours Nigeria Makes First Step Away From Oil
  • 1 day Russia Approves Profit-Based Oil Tax For 2019
  • 1 day French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 2 days Aramco In Talks With Chinese Petrochemical Producers
  • 2 days Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 2 days Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 3 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 3 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 3 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 4 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 4 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 4 days Whitefish Energy Suspends Work In Puerto Rico
  • 4 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 5 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 5 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 5 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 5 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018

Despite Low Prices, Chinese Ramp Up Copper Production Here

Despite Low Prices, Chinese Ramp Up Copper Production Here

New copper production has been hitting the market fast and regular of late.

And this week we got news that yet another massive mining project is now providing additional supply — even as prices dip to their lowest in six years.

That’s the Las Bambas copper mine in Peru. A mega-project being developed by China’s MMG — which said yesterday the mine has just sent out its first shipment of copper concentrate. Related: Oil Sold for -$0.50 per Barrel. A Negative Price!

MMG announced that 10,000 tonnes of concentrate from Las Bambas sailed out of Peru’s Port of Matarani last Friday. Marking the first production ever from this new mine.
And there’s a lot more where that came from.

Las Bambas is in fact one of the largest copper mines to be developed globally the last several years. With the operation expected to produce 200,000 tonnes of copper metal this year — ramping up to 400,000 tonnes in 2017. Related: U.S. Crude Production Could Fall Harder Than Thought In 2016

This is one of the major operations expected to lift Peru’s copper output by 65 percent this year. This following a 35 percent rise posted this past October.

Of course, given the ownership by MMG, much of the Las Bambas output will likely be destined for China. Meaning other copper producers around the world may still be left looking for supply.
But given that China has been one of the major drivers for global copper demand, the emergence of a big supply source like this is a critical happening for the industry. Related: The World Just Lost One Of Its Biggest Oil Plays To Low Prices

Added to other major China-backed developments like the Toromocho mine in Peru and the upcoming Mirador development in Ecuador, mines like Las Bambas are going to mean Chinese buyers have a steady stream of mine feed. Which may dampen China’s buying from other parts of the world.
Watch to see if the continued ramp-up of Las Bambas goes on schedule. And if China’s buying elsewhere globally is less aggressive in the wake of this commissioning.

Here’s to a big shoe dropping

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




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