Anglo American Ready to Ship from Minas-Rio Mine by End of 2014
London-based miner Anglo American (LSE:AAL) is on pace to ship the first iron ore from its Minas-Rio project by the end of 2014.
"At the end of June, we had completed 95% of the project required to achieve this objective," said CEO Mark Cutifani in the interim results for H1 2014.
Once up and running, the 100 percent owned Minas-Rio mine is expected to produce 27 million tons of iron ore per year.
According to the interim results, construction of the mine is ahead of schedule as several key components of the project have been recently completed.
"The 529 km pipeline to the port at Açu has been laid. At the port, construction is continuing as scheduled and good progress has been made on the breakwater, with 26 of 33 caissons installed for first ore on ship. Further progress continues to be made in obtaining the outstanding licenses required," the report said.
With $6.6 billion invested into the project already, Anglo American is expected to drop an additional $1.2 billion during the second half of 2014.
"This would leave around $1 billion for remaining capital expenditure for 2015, including the full extension of the breakwater, and mine equipment for the ramp up," the report said.
The Minas-Rio mine is located in the state of Minas Gerais, Brazil. The mine will include open-pit mines, a beneficiation plant and a pipeline to the Port of Acu in Rio de Janeiro.
Copper production from top ten companies to increase by 3.8%
Copper production from the world’s top companies is set to increase by up to 3.8% this year, following a fall of 0.2% in 2020, GlobalData analysis reveals. Last year’s marginal slump saw production drop to 11.76 million tonnes (Mt).
The initial impact of the COVID-19 pandemic on mining operations was immense, however, six of the ten largest copper producers succeeded in increasing output last year. In 2021, copper production from the top ten copper companies is expected to bounce back, rising by up to 3.8%, to reach 12.2Mt, according to GlobalData, a leading data and analytics company.
The highest increase in copper production was by Canada’s First Quantum, which, despite all the challenges, reported 10.4% growth in 2020. The company’s Sentinel mine in Zambia and Cobre Panama were key contributors to this growth. While the latter remained under care and maintenance between April and August 2020, it delivered record production levels during the subsequent months.
Codelco, the world’s largest producer of the red metal used in electric vehicles, also bucked the trend.
Vinneth Bajaj, Associate Project Manager at GlobalData, commented: “Despite Codelco reporting over 3,400 active cases during July 2020, the company achieved 1.2% growth in its production in 2020. The company implemented a four-phase plan, as part of the COVID-19 measures, to ensure the health and safety of its employees, while also avoiding any significant impact to its copper output.”
Although the overall impact was minimal, declines in production were observed from Glencore (8.2%), Antofagasta (4.7%), BHP (3.9%) and Freeport McMoRan (1.3%). Reduced operational workforces due to COVID-19 measures, lower ore grades and production halts due to maintenance were the key disruptors to output during 2020.
The move towards electric vehicles and clean energy from renewables sources such as solar panels and wind turbines has driven the copper price to all-time highs. Copper has been among the best performers over the last month where metals ranging from aluminum to iron ore have surged to their highest prices in years. The rally is being fueled by stimulus measures, near-zero interest rates and signs that economies are recovering from the global pandemic.