• 4 minutes Will Libya Ever Recover?
  • 9 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 13 minutes What Can Bring Oil Down to $20?
  • 16 minutes Venezuela continues to sink in misery
  • 22 hours Alberta govt to construct another WCS processing refinery
  • 9 hours Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 13 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 24 hours Let's Just Block the Sun, Shall We?
  • 15 hours Water. The new oil?
  • 10 hours Storage will in time change the landscape for electricity
  • 2 days U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 mins Anti-pipeline activism isn't generating more investment in renewable energy
  • 2 days Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 2 days OPEC Cuts Deep to Save Cartel
  • 13 hours Regular Gas dropped to $2.21 per gallon today
Alt Text

As Diesel Dies, One Commodity Is Crashing

Platinum futures plunged to 14…

Alt Text

Peak Lithium Won’t Happen Anytime Soon

Peak lithium is not happening…

Alt Text

Miners Are Looking To Ramp Up Lithium Production

Lithium prices have withstood all…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

This Copper Giant Is Buying Into An Unexpected Frontier

Copper has been one of the best-performing commodities of the last few months. With the red metal up over 15 percent since late May, to a current $2.88 per pound.

And that price action is spurring some important project activity. Including a little-noticed, but critical move this week from the world’s largest copper mining company.

That’s Chile state mining firm Codelco. Which said it is preparing an entry into a new and far-afield jurisdiction, in pursuit of new copper reserves.

Mongolia.

In an interview Friday with Reuters, CEO Nelson Pizarro said that Codelco is “preparing” to invest in Mongolia copper projects. With Pizarro noting the country holds significant untapped potential for new developments.

Pizarro further suggested that Codelco will be looking for development-stage projects. Which he described as “medium-term” investments — likely meaning Codelco will take a role in proving up and developing new mineral resources here ahead of putting them into production.

That approach makes sense, given that Mongolia currently has only a few advanced copper mining projects. Led by the massive Oyu Tolgoi deposit being mined by Rio Tinto through the former Ivanhoe Mines vehicle, Turquoise Hill.

But mines like that demonstrate Mongolia’s big potential. With Oyu Tolgoi currently containing an appraised 23.5 million tonnes of contained copper metal, along with 36 million ounces of gold. Related: Will Oil Markets Rebalance Before The OPEC Deal Expires?

Here’s the most critical part: this move would be an incredible step-out for Codelco. Up until now, the copper major has been exclusively focused on mining in Chile and exploring in nearby Latin America — with projects in Brazil and Ecuador.

The fact that management is willing to leap from South America to Mongolia shows they see something big in the geology here — a major endorsement for the country, which has struggled lately to attract mining investment.

Mongolia’s government is trying to change that. Just last week, regulators kicked off a new bid round for mineral projects — which may be where Codelco is planning to pick up new licenses.

Watch for confirmation of Codelco’s entry into this high-potential nation. If the move does materialize, it could signal a new wave of project activity coming here.

Here’s to taking a leap.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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