Anglo Asians New Three-Year Contract Will Boost Profitability, Executive Says
Good news for Anglo Asian Mining: the Azerbaijan-based gold-silver-copper mining company has just sealed the deal on a three-year contract with Geneva-based trading and logistics group Industrial Minerals SA. According to Anglo Asian executives, this partnership has the potential to greatly increase profitability and shareholder returns.
The new deal cements Industrial Minerals SA as an exclusive partner of Anglo Asian Mining for all sales of dry and wet copper concentrate excavated from Anglo Asian’s western Azerbaijan-based Gedabek mine. According to Anglo Asian, the mining company already has a stockpile of copper concentrate ready to go and expects to exceed its original copper excavation targets for the 2014 fiscal year – in the eyes of Anglo Asian CEO Reza Vaziri, this all adds up to a positive financial situation:
"We are delighted to secure this exclusive sales contract with Industrial Minerals, which will see our copper concentrate product adding to our bottom line and in turn increasing our profitability. With record copper sales from Gedabek totalling US$6.6m in 2013, we are well placed to continue this trend in 2014 and I look forward to updating shareholders on the copper production and sales in the coming months, as well as on gold production from Gedabek.”
While it is not clear whether Industrial Minerals SA will be involved in the sale and distribution of materials excavated at Anglo Asian’s Gosha mine site, Vaziri also expressed a positive outlook regarding the potential profitability of that project as well:
"Developments at our second gold project Gosha, which has started first phase gold production in Azerbaijan, will also materialise. We now have two production projects in the country, which together sees Anglo Asian's gold forecast for FY2014 between 62,000oz Au and 67,000oz Au."
These are just two of several mines that Anglo Asian has plans for within the next few years. These early successes so far predicate a bright future for the company.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.