May 17, 2020

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

Freeport McMoRan Copper & Gold Inc.
Lundin Mining
Chile
C
Admin
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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Dec 16, 2020

Zimbabwe targets £8.8bn mining industry by 2023

Zimbabwe
exploration
Gold
Dominic Ellis
3 min
Government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas
Government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas...

Zimbabwe’s government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas under the Ministry of Mines and Mining Development as part of wider measures to achieve a £8.8 billion mining industry by 2023, according to a senior government minister.

Information Minister Monica Mutsvangwa said other plans include stopping the issuance of special grants in the reserved areas under the Ministry of Mines and Mining Development until the exploration and evaluation is complete and a robust value addition program for diamonds is implemented. 

Mutsvangwa was speaking at a post-cabinet media briefing on December 15.

She adds that the issuance and renewal of special grants for energy should also be based on the financial and technical capacity to value add all types of coal, as well as for ideal exploration of Coal Bed Methane.

For renewal of special grants, consideration should take into account the period the Special Grant has been held as well as plans with milestones for value addition of the special grant, Mutsvangwa says. She adds that the Zimbabwean government expects gold to drive the mining sector in order to achieve the ambitious target, with the precious metal expected to contribute approximately £2.96 billion to the overall target.

Mining is one of Zimbabwe’s major contributors to its economy, alongside agriculture, which is the mainstay. The mining sector accounted for more than 60 percent of the country’s foreign currency receipts in 2019, and contributed around 16 percent to national Gross Domestic Product, the Chamber of Mines says.

The country’s mining industry is focused on a diverse range of small to medium mining operations. The most important minerals produced in Zimbabwe include gold, asbestos, chromite, coal and base metals.

Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year, due to the effects of drought and the COVID-19 global pandemic.

When presenting the 2021 National Budget in November this year, Finance and Economic Development Minister, Professor Mthuli Ncube, said that the mining sector is projected to rebound by 11 percent next year after surviving a COVID-19 induced shock that saw the sector contract by 4.7 percent in 2020. In September, mining bans in national parks were introduced, according to news agencies.

He added that the National Budget would allocate £1 billion towards the operations of the ministry for planning, promotion and exploration, data capturing, and automation, among other key mining processes.

Other factors necessary for the achievement of the £8.8 billion target include a stable macroeconomic environment, policy consistency, and availability of long-term capital to fund mining projects along the entire mineral value chain, the minister said. 

Stopping "illicit financial flows" from gold smuggling is another key issue to address, according to media reports.

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