Newmont Mining Stops Output at Indonesian Copper Mine
U.S. based Newmont Mining has stopped copper output from its Batu Hijau mine in Indonesia following stalled talks with government officials.
The company has been hit hard by Indonesia’s new mining rules, which were imposed in January, banning mineral export along with higher tax on copper concentrate exports. The new rules have forced Newmont Mining to halt concentrate exports since mid-January.
Newmont said its storage facilities at the Batu Hijau mine have reached full capacity and it’s attempting to delay standing down its 8,000 employees and contractors ahead of a government meeting this week.
"Newmont Nusa Tenggara (PTNNT) today said that its concentrate storage facilities at Batu Hijau are now full, forcing the operation to halt processing activities and cease production of copper concentrate," Newmont said in a statement.
Newmont along with fellow U.S. miner Freeport McMoRan Copper & Gold Inc. are expected to hold talks this week with senior government officials in hope of ending the hiatus to copper shipments.
According to the statement from Newmont, “[The meeting] is intended to clarify the conditions under which copper concentrate exports will be permitted. The company is communicating with employees about the situation and most are prepared to be on standby at reduced pay, should that become necessary.”
After a slower first-quarter economic growth and a swelling trade deficit in April, the risk of massive job layoffs could add to pressure on the Indonesian government to find a solution to the stoppage.
Newmont Mining and Freeport McMoRan account for 97 percent of Indonesia’s copper output. The two companies are still shipping out some refined copper, but have immobilized exports of copper concentrate after objecting to the newly imposed tax rule.
Before the newly imposed rules, Newmont’s forecast for copper was at 110,000-125,000 tons in 2014.
View the entire statement from Newmont Mining Corporation here: http://www.ptnnt.co.id/ptnnt-provides-update-on-batu-hijau-operations.aspx
Global iron ore production to recover by 5.1% in 2021
Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.
Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.
“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”
Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.
Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”