May 17, 2020

REPORT: Freeport-McMoRan to Sell Candelaria Copper Mine in Chile

Freeport McMoRan Copper & Gold Inc.
Lundin Mining
2 min
REPORT: Freeport-McMoRan to Sell Candelaria Copper Mine in Chile
Freeport-McMoRan Copper & Gold Inc. has reportedly found a buyer for its Candelaria copper mine in Chile.According to reports, Canadian Lundin Minin...

Freeport-McMoRan Copper & Gold Inc. has reportedly found a buyer for its Candelaria copper mine in Chile.

According to reports, Canadian Lundin Mining has agreed to purchase the copper mine for $2 billion. The miner will partner with Franco-Nevada Corp, which will pay for a stream of the mine’s future gold production.

If the report is true, the acquisition will boost Lundin’s copper production significantly.

CEO Paul Conibear revealed last year the company was looking for assets with a minimum 10-year mine life and capable of producing at least 50,000 tons of copper per year.

Freeport, which is one of the largest mining companies in the world, has been trying to sell assets to pay down its hefty $20.9 billion debt load.

Candelaria, which is Freeport’s fifth biggest mine in terms of employees, is an open-pit copper mine located in northern Chile. The joint venture, which is 80 percent owned by Freeport and 20 percent by Sumitomo Corp., produced 370 million pounds of copper and 87,000 ounces of gold last year. The Candelaria mine is Chile’s second biggest mine.

"This might not be the best time to sell a copper asset but they promised to reduce their debt," says Charles Bradford, an analyst with Bradford Research Inc. "And Candelaria's a good property that can generate some cash, and there are people out right now with money to spend."

Headquartered in Toronto, Lundin Mining produces copper, zinc, nickel and lead from mines in United States, Africa and Europe. The company has partnerships with Freeport-McMoRan on several projects around the world.

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Jul 20, 2021

British Lithium Pressured Due To Calls for Electric Cars

3 min
The ever-increasing need for electric vehicles is mounting pressure on British Lithium as the 2035 deadline inches closer

The British demand for lithium is set to reach 75,000 tonnes by 2035 as the government works towards their ban on the sale of high-polluting diesel and petrol vehicles within the UK. This comes as automakers worldwide continue to insist on the benefits electric vehicles will have on slowing the rate of climate change. 

It is estimated that the UK will require 50,000-60,000 MT of lithium carbonate a year by 2035 for battery production to satisfy government needs. This is assuming production remains at 1.2 million vehicles per year, and the amount of lithium required does not increase.

British Lithium, which hopes to begin constructing a quarry to produce 20,000 MT of lithium carbonate a year in a $400 million investment, are not without competitors, both within the UK and abroad. 

Competition For Lithium Rises In Europe 

After only five years after its initial launch, Cornish Lithium is setting its sights on becoming a UK powerhouse in mining lithium, aiming to begin commercial production in under four years. Jeremy Wrathall, a former investment banker and current managing director of Cornish Lithium, had the future in mind when founding the company. 

“In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand, and I started to think about lithium,” he said in an interview with AFP. “A friend of mine mentioned lithium being identified in Cornwall, and I just wondered if that was a sort of unrecognised thing in the UK.”

Lithium was first discovered in Cornwall around 1864 and has not been mined again since 1914 when it was produced as an ingredient in fireworks. Now, however, Cornish Lithium is reportedly in the testing stage to see if the metal can be produced commercially to meet the growing demand required for the electric car sector. 

Despite Cornwall’s close historic ties to mining lithium, Wrathall insists that the project is purely commercial. 

Cornish Mining Revival For Lithium Production

“It’s not a mission that drives me to the point of being emotional or romantic,” he says. “It’s vitally important that we do get this technology otherwise Europe has got no lithium supply.”

The European Commission has also stated their goal to end the sale of new petrol and diesel cars by 2035 to aid the environment. That being said, the majority of lithium extraction currently relies on power provided by environmentally damaging fossil fuels─a slight contradiction. 

Alex Keynes, from the Brussels-based lobby group Transport & Environment, is adamant that mining for lithium should be done sustainably. 

“Our view is that medium-to-long term, the majority of materials including lithium should come from efficient and clean recycling.

“Europe from a strategic point of view should be looking at securing its own supply of lithium.”

Despite growing competition from abroad, British Lithium Chairman, Roderick Smith, continues to place importance on the mining of lithium within the UK. 

“Imagine what the UK economy would look like if we lost our automotive industry,” Smith says. “The stakes are high for the UK.”

Smith expects the UK to compete with other European countries to secure a lithium battery plant in the near future.

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