May 17, 2020

China Molybdenum moves to acquire key Freeport copper mine for $2.7billion

Tenke Fungurume
Freeport-McMoRan
China Molybdenum Co. Ltd
Freeport-McMoRan
Dale Benton
1 min
China Molybdenum moves to acquire key Freeport copper mine for $2.7billion
The Tenke Fungurume mine in the Democratic Republic of Congo, owned by US mining company Freeport-McMoRan, looks to be sold in a bid to reduce the compa...

The Tenke Fungurume mine in the Democratic Republic of Congo, owned by US mining company Freeport-McMoRan, looks to be sold in a bid to reduce the company’s $20billion debt.

With copper prices falling in the last year, the move represents China’s mining companies benefiting from the relatively weaker bargaining positions that US and global companies are finding themselves in due to large debts and lower commodity prices.

China Molybdenum Co. Limited is the largest molybdenum producer in the world.

Freeport, like many companies in the mining industry, have spent the last year working hard to reduce net debts. Since the start of 2016, the company has overseen over $4billion in asset sales.

“We are committed to our immediate objective of reducing debt, while retaining a leading position in the global copper industry,” Freeport Chief Executive Richard Adkerson said in a statement.

The attainment of Tenke Fungurume is the second acquisition in less than a month for China Molybdenum. This follows the purchasing of Anglo American’s PLCS’ Brazilian niobium and phosphates business for £1.5billion late last month.

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Jul 17, 2021

Coal India Secures First-Of-Its-Kind Digital Deal

digitalmining
coalindia
Accenture
Sustainability
2 min
Coal India Limited has secured a new deal with Accenture Solutions to consult on enhancing mining performance and production through a digital endeavour

Coal India Limited (CIL) has appointed Accenture Solutions to digitally transform seven of its open-cast mines as the company strives to improve performance and increase coal production. Accenture is due to lay down digitalisation groundwork until March 2022.

The deal aims to increase coal production by 100 million tonnes (MT) by the end of FY’23. Once the minimum quantity has been surpassed, an agreed sum will be paid to the consultant for every additional sum of coal produced. This success fee will only be paid on the procurement of the minimum assured quantity. 

The move will see heavy earth moving machinery (HEMM) fitted with digital sensors to monitor performance efficiency at all levels. Additionally, modern data analytic techniques aim to increase mine productivity and project monitoring through functional system management and effective observation. 

An Exciting Venture For Global Mining

CIL, which aims to provide energy security in an environmentally and socially sustainable manner, hopes the move will help transform the entire business of mining operations and ensure higher volumes of coal are acquired at a lower cost. 

“This is a first of its kind initiative by the company utilising digitalisation to ramp up coal output,” CIL has said. 

A Digital Step Towards Enhanced Performance

Digitalisation is expected to take place at open-cast mines in Kusmunda, Gevra, Dipka of Southern Eastern Coalfields (SECL), Migahi, Jayant, Dudhichua, and Khadia of Northern Coalfields (NCL). Nearly 32% (188 MT) of CIL’s 596 MT output in FY’21 was accounted for by the seven selected mines. However, this new deal is set to see a large increase following the subsequent digital changes due to be made.  

“Learning from the outcome and success of this model, we may replicate it in our other large mines,” says CIL, optimistic about the future following the modernisation of their mining. 

It is expected that the move will help address roadblocks and guarantee corrective measures are put into place, ensuring the company is able to move forward with its aim of increasing output whilst remaining sustainable and eco-friendly.

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