Duolong in Tibet is expected to be a world-class copper-gold base

Source: www.mlr.gov.cn  Citation: www.chinamining.com.cn   Date: Dec.31, 2013

“A prototype of the world-class copper gold base has already shown here.” This is one consensus from many experts and representatives who attended the results exchange conference on Tibetan Duolong integrated exploration area and expert seminar held in Beijing on December 29th.

It’s said, the geotectonic position of the Tibetan Duolong integrated exploration area was located in the west segment of the Pannujiang ore belt in the Tethyan ore domain. The Duolong integrated ore area was an important work area in the field. At present, five large to super large porphyry copper ore, that is, Duobuzaxi, Bolong, Tiegelongnan, Naruo and etc. , and many copper deposits had been discovered. In addition, a plurality of copper gold polymetallic ore was also found in other work areas, such as Qingcaoshan, Lemachaha and etc. 

“Among them, the Naruo copper deposit was calculated with 332+333 with 2,368,300 tons of copper, 85.18 tons of gold and 797.67 tons of silver. This ore deposit occupied three boundaries of the ore body, i.e. south, north and east, and was confirmed as a large-scale copper gold mine belonging to porphyry type and cryptoexplosion breccia type. The Tiegelongnan gold copper ore was calculated with 332+333, possessing 4,799,000 tons of copper, 65.96 tons of gold and 988.42 tons of silver. And lots of drilling holes terminated in the ore body. It was preliminarily thought as a super large copper gold deposit with more than 5,000,000 tons of copper belonging to epithermal porphyry type and cryptoexplosive breccia type.” These were introduced by the man responsible for the 5th geological team, Tibet Bureau of Geology and Mineral Resources which undertook the project.

He also introduced, at present, the Duobuza copper deposit was calculated with 332+333+334 having 2,735,700 tons of copper, 85.1 tons of gold. And the Bolong copper gold ore was calculated with 333+334 possessing 3,697,900 tons of copper, 85.1 tons of gold.

It was known to the reporter that in August, 2012, the Ministry of Land and Resources, the Tibet Autonomous Region People’s Government, Aluminum Corp. of China and Sichuan HTC Group Co. Ltd. signed a cooperation framework agreement in Lhasa City, Tibet. And after signing the agreement, the Ministry of Land and Resources provided the policy support in time for the project. The Ministry of Land and Resources Exploration Division, China Geological Survey, Technical Guidance Center actively provided technical support and information service. These all promoted the seamless docking between the public geological work and the commercial geological work. People’s Government in Tibet Autonomous Region, the Office of Land and Resources, the Ali Prefectural Party Committee and Administrative took the initiative to coordinate the relationship among the parties, creating a favorable environment for the project implementation. As the main business investment, Aluminum Corp. of China and Sichuan HTC Group Co. Ltd. continued to increase the intensity of investment, accelerating exploration on the Tibetan Duolong ore integrated area.

Through more than a year of work, a new understanding and discovery had been made in this region. For example, it was confirmed that the Tiegelongnan deposit was Tibet’s first super large copper(gold) deposit with low temperature. Considering the characteristics of ore deposit and the scale of ore body, the Tiegelongnan ore deposit bore a high comparability with Zijinshan copper gold deposit in Fujian, and the Tiegelongnan ore deposit was the “second” super large scale high sulfur epithermal deposit in our country. In addition, there was a great potential in looking for this kind of deposit in peripheral area, the Gaerqin and Dibaonamugang would be the key areas of prospecting breakthrough in the next step. There existed ore combination of “three-in-one” in the whole Duolong ore integrated area, that is, the porphyry type, breccia type and hypabyssal epithermal type.

Zhong Ziran, chief engineer of Ministry of Land and Resources, attended the meeting. At the meeting, Chen Yuchuan, an academician of Chinese Academy of Engineering, Duo Ji and other experts praised the prospecting result of Duolong integrated exploration area as “exceeding the expectation” and “feel excited”, and they thought that there was still a great ore prospecting potential in this area. Some experts even suggested that the 10 years’ prospecting was expected to reach 30,000,000 tons of copper and 1,000 tons of associated gold in this area.

To make the copper and gold base become a “world class”, it’s necessary for geological workers to put into more hardship and effort. To this, the experts proposed that the next step should continue to do a good job in organizing the work implementation, concentrate personnel strength, and increase the equipment support; further carry out geophysical exploration work, intensify the comprehensive research and deepen the research on strategic selection to systematically know and comb the whole Nujiang metallogenic belt and continuously optimize the important prospect area and prospecting target area; make deployment planning, strengthen the anomalies verification and carry out the necessary drilling verification to realize the combination of industry-learning-research with production and promote the greater breakthrough in prospecting.

“And also embark on the related matters of the development of mineral resources, perform the unified deployment and strive to serve the local economic development.” many experts recommended at the meeting. (Wang Min) (Translated by TLRHVC)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20-23, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.


Remarkable achievements in old mine prospecting with a promising future: discovery of mines in 54 out of 68 exploration projects established in 2012

Source: www.mlr.gov.cn   Citation: www.gtzyb.com   Date: Dec.16, 2013

The old mine prospecting had obtained remarkable achievements with a promising future. Recently, the Ministry of Land and Resources held an on-site communication seminar on Qixia Mountain lead-zinc mine prospecting achievements in Nanjing. The reporter learned from the seminar that 54 out of 68 exploration projects established in 2012 were confirmed to have discovered mines, among which the newly increased resources had amounted to large scales in 9 projects. 

The old mine prospecting formed an essential part of the strategic action in prospecting breakthrough and a continuation of replacement resources prospecting in the national crisis mines as well. Since its launch in 2012, the Ministry of Land and Resources had vigorously promoted it. It is reported that 126 old mine prospecting projects had been implemented nationwide, putting into 6.42 million RMB of the central fiscal capital and pulling 670 million RMB from the local finance and business matching funds. 54 projects were verified to have discovered mines among 68 exploration projects set up in 2012 and a major breakthrough had been made in a batch of deep and periphery prospecting in mines. The new resources in 9 projects had reached to a large scale, such as Zaozigou gold mine in Gansu province, Baiyun gold mine in Liaoning province and Laowan gold mine in Henan province and the newly increased resources in another 9 projects had amounted to medium size, for example, Luobusha chromite mine in Tibet, Pingshui copper mine in Zhejiang province and Jinchangyu gold mine in Hebei province. (Wang Shaoyong) (Translated by TLRHVC)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20-23, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China’s biggest overseas copper mine project in Peru: about 12 million tons of resources, accounting for 19% of the total domestic copper resources

Source: www.mlr.gov.cnCitation: www.chinamining.com.cn   Date:Dec.16,2013

The reporter learned from Chalco on 11th, December that Chalco Peru Toromocho copper mine production ceremony, China’s biggest overseas copper mine project, was held in Lima, capital of Peru. This marked that the biggest single copper processing production line was put into operation in the world.

It’s learned that as the biggest single mining project in Peru, the copper resources giant, Chalco Peru Toromocho copper mine ranked the shortest in construction cycle and the highest in equipment level among the same-sized copper mine projects in the world. It was the largest mining project in Peru in recent years. The mine had a possession of about 12 million tons of copper resources, accounting for about 19% of the total domestic copper resources in our country. The project planned to have an annual output of 220,000 tons of copper concentrate, taking a proportion of about 18% of its own domestic production in our country and entered the global top 20 copper mines with more than 30 service years, which would effectively relieve the supply shortage of copper resources and copper concentrates in our country.

It’s reported that Chalco Peru Toromocho copper mine adopted the internationally advanced EPCM construction model for the first time with a number of world-class equipments such as the world’s largest excavator, mining truck, semi-autogenous mill, ball mill, the flotation machine system and so on. Its design, construction and the cost control level took the world’s leading position and the indicators became the new benchmark for global copper project. The project’s production cost was expected to be lower than that of more than 75% copper mines due to the resources endowment, the excellent project design and construction level, the advanced operating mode and management level.

Chalco Peru Toromocho copper mine was a typical success case in China’s investment overseas and a sample project for Chinese enterprises to “go out”. In 2007, the acquisition of Peru mining company enabled Chalco to acquire the world super large copper mine---tens of millions of tons of copper mine in Toromocho located in Peru. During the course of construction and development of Chalco Peru Toromocho copper mine, the export-import bank of China and China development bank had offered substantial supports and helps for the project, creating a positive environment for the smooth operation of the project.

Mr. Xiong Weiping, chairman of Chalco, said that Chalco would vehemently fulfill the social responsibilities and commitments in the future to seek development while improving the local residents’ employment, protecting the local ecological environment and sharing the development fruits with the local residents in the long term. He also hoped that Chalco Peru Toromocho copper mine project would be a model for Sino-Peru cooperation, better promoting the local social and economic development. (Wang Min) (Translated by TLRHVC)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20-23, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Platinum price surpasses the gold’s; gold investment may be
negative for the first time in thirteen years

Source: www.mlr.gov.cn   Citation: www.chinamining.com.cn   Date: Nov.25, 2013

The constantly declining price of gold could make gold investment income negative for the first time in 13 years.

Since this year, the price of gold had fallen by more than 20%. In the precious metals, except for a big drop in gold and silver, the price of platinum and palladium did not show obvious signs of decline and at present, the price of platinum had exceeded that of gold.

Citigroup recently released a report that the average price of gold in 2014 is expected to be at 1255 U.S. dollars per ounce. And the price of gold would fall sharply this year for market expectation on Federal Reserve starting to cut loose policy, but the vehement demand from China would give the gold price support to some extent. However, in precious metals, it would be particularly optimistic on the prospect of the palladium price.

Citibank said, it was expected that the palladium investment demand would continue to rise, promoting the palladium price close to 900 U.S. dollars per ounce before the end of 2014. And the average price of palladium would be at 850 U.S. dollars per ounce during 4th quarter in 2014.

Citibank said that the average price of platinum was expected to be at 1525 U.S. dollars per ounce during 4th quarter in 2014. And compared with the current price level, it would rise by about 5%. The platinum price was forecasted to be at 1500 U.S. dollars per ounce in 2014.

Previously, the report on the trend of gold demand during 3rd quarter in 2013, published by the World Gold Council, showed that the overall demand on gold was nearly 869 tons in 3rd quarter in the world and this was 21% year-on-year decline. Since this year, the gold demand in the world fell by 12% in year-on-year state, and the decline in demand was mainly due to the considerable reduction in the gold ETF holding.

Since American economy showed obvious warmer signs, investors expected that the USA quantitative loose policy would exit beforehand and so, they reduced the ETF position. The data from the World Gold Council showed that after the gold ETF reduced 402 net tons in the 2nd quarter, the gold ETF in 3rd continued to reduce to 119 tons’ position. And in the first 9 months of this year, the gold ETF reduced nearly 700 tons.

Up to now, in terms of the world’s largest gold ETF(Exchange Traded Fund) ——SPDR Gold Trust GLD, its gold holdings were reduced to 863 tons and hit the lowest once again since February 2009.

The Federal Reserve’s monetary policy was still the biggest factor that influenced the gold market. Both organizations and individual investors, the concern about the uncertain increase in interest rates from the Federal Reserve also deepened the worry about the trend of gold. And this had a direct impact on the changes in the holdings of the gold ETF as well as the physical gold demands from Asian investors.

However, Bernanke, the Federal Reserve Chairman, said recently that if necessary, the Federal Reserve would still maintain the ultra loose monetary policy. And only with a guarantee that the job market continued to be improved, would the Federal Reserve begin to cut debt purchase. Even if the unemployment rate dropped to below 6.5%, the federal funds rate also may still be maintained at near zero.

Bernanke also pointed out, the target of the 6.5% unemployment rate was only a threshold, not the trigger mechanism for increasing interest rates. And in judging the employment market prospects, the cumulative progress since September 2012 and the future prospects in continuous improvement would be taken into account.

However, the comments on backing the loose policy from Bernanke did not bring temporary buying for the already weak gold market. The analysis from the standard bank showed that only with a physical gold demand in short-term could not propel the gold price to continuously rise. The main reason was that the expectation on Federal Reserve’s exiting from loose policy continued to rise in the market.

What is noteworthy was that the holdings outflow rate of gold ETF had obviously slowed down compared with that of the first half of the year. The latest report from Deutsch Bank showed that the price of gold would rise in short-term if the outflows rate on gold ETF fund slowed down or was gradually stable. But the gains would be very limited, and the prospect of gold price was not optimistic. (Yang Liuhan) (Translated by TLRHVC)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20-23, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China’s first discovery of gold in sulfur-nickel-cobalt ore

Source: www.mlr.gov.cn  Citation: www.gtzyb.com   Date:Oct.11, 2013

Recently, the Armed Police Gold team discovered a new type of gold bearing mineral, namely, sulfur-nickel-cobalt ore at a copper-gold deposit located in Jinchang, Heilongjiang Province. As the first of its kind in the world, this discovery filled the blank in gold prospecting field.

The useful elements in sulfur-nickel-cobalt ore are cobalt and nickel. The two elements are important raw materials for the production of heat-resistant, hard, anti-corrosion, magnetic alloys, and important strategic materials widely used in aviation, aerospace and machinery manufacturing.

Sulfur-nickel-cobalt ore, as the gold bearing minerals, mainly lies in the deep part of porphyry ore body in which the average purity of natural gold is generally higher than that in other gold bearing minerals. The studies prove that gold can also be mineralized in high temperature and deep-layer environment, bearing a strong theoretical and practical guiding significance in widening the gold prospecting work.

Jinchang mining area, located in the southeastern part of Heilongjiang Province, was a super large gold deposit exploration base and a key scientific research base of the Armed Police force of gold. At the end of the 20th century, the Armed Police Gold team entered the mining area and currently explored 23 ore bodies with industrial value and 4 mineralized bodies and proved more than 80 tons of gold reserves. Research results showed that the deep part of copper-gold deposit still had a fairly bright prospecting future and the scale of the ore deposits can be further expanded. (Zhao Hongliu / Yu Tao) (Translated by TLRHVC)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

Iron ore surplus seen shuttering China mines

Source: www.chinamining.org   Citation: China Daily   Date: May.09, 2014

Imported iron ore is unloaded from a vessel in Nantong, Jiangsu province.

New, cheap supplies from Australia, Brazil pushing global prices down   

Surging global supplies of seaborne iron ore will challenge Chinese producers of the raw material for steel, probably forcing some higher-cost capacity in the country to close, according to BHP Billiton Ltd.
   
The gain in global production is being led by Australia and Brazil and their new, low-cost output will displace marginal suppliers in China, Michiel Hovers, vice-president of iron ore marketing at BHP, told an industry conference on Wednesday.
   
Vale SA, the world`s biggest iron ore producer, plans to raise output by almost 50 percent by 2018, Claudio Alves, global director of marketing and sales, told the gathering in Singapore.
   
The biggest producers, including Vale, BHP, Rio Tinto Group and Fortescue Metals Group Ltd, have invested billions of dollars to expand output, betting on sustained growth in demand from China, the biggest buyer. Iron ore fell into a bear market in March amid forecasts for a global glut.
   
Fortes cue wouldn`t cut output even if prices extend declines as its costs are low, Zhuang Binjun, business development manager, said.
   
"Seaborne supply growth will come largely from Australia and Brazil," said Hovers. "This new supply will be low-cost seaborne and displace marginal supply from high-cost domestic Chinese producers and other lower-quality iron ore imports into China."
   
Slumping prices
   
Ore with 62 percent content delivered to Tianjin has fallen 21 percent so far this year to $106 a ton as of Tuesday, according to data from The Steel Index Ltd. The benchmark fell to $104.70 on March 10, the lowest level since 2012. While prices may be firmer over three months, there may be a drop below $100 over six months, toward $90, on the new supplies, Kamal Naqvi, global head of metals at Credit Suisse Group AG, told the conference.
   
If prices drop to $100, output in China may be hurt as domestic mines with high production costs are forced to cut output or close, according to the Bureau of Resources and Energy Economics, Australia`s government forecaster. By comparison, Rio Tinto can be profitable above A $39 ($36), BHP`s breakeven is A $41 ($38), and Fortescue`s is A $56, UBS AG estimated.
   
Global seaborne supplies will increase 126 million tons to 1.38 billion tons this year, Morgan Stanley estimated in a May 5 report. That will increase the worldwide surplus to 79 million tons in 2014 from 1 million last year, the bank forecast.    

"What`s happening now is the major iron ore producers are bringing considerable new capacity," Alves said in an interview, forecasting a rise of about 120 million tons this year and a further 100 million tons in 2015. "Most of the tonnage is very competitive," he said.
   
 Vale`s expansion
   
Production at the Rio de Janeiro-based company will rise to about 453 million tons in 2018 compared with 306 million tons last year, Alves told the conference. Vale`s average cost of production in Brazil is $21 to $22 a ton, he said.
   
"It takes time to absorb all this pickup in iron ore supply," said Alves, forecasting China`s imports will be more than 900 million tons this year from 820 million tons. "It will make some pressure in terms of price, create some volatility."
   
The Tianjin benchmark fell for a fifth month in April, the longest losing run since August 2012, as growth in China slowed and seaborne supplies rose. The price will drop to $100 in the fourth quarter, according to Goldman Sachs Group Inc.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year.  As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20th -23rd , 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s crude steel output up 2.4% in Q1

Source: www.chinamining.org   Citation: China Knowledge   Date: May.05, 2014

China, the world`s largest steel producer, saw its crude steel output increase 2.4% year on year to 202.7 million tons in the first quarter of this year, according to the latest statistics released by the National Development and Reform Commission.

The commission said that the country`s output of steel products grow 5.3% year on year to 261.41 million tons in the first three months.

China exported 18.33 million tons of steel products in the three-month period, up 27% year on year, while its import of steel products hit 3.59 million tons, up 11.3% from a year earlier.

In the month of Mar, the prices of 20-mm steel sheets and 1-mm cold-rolled coils were at RMB 3, 488 per ton and RMB 4,314 per ton, down 11.7% and up 10.3% from a year earlier, respectively.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year.  As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20th -23rd , 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.


Chinalco Mining sets sights on copper projects in Latin America

Source: www.chinamining.org   Citation: scmp.com   Date: Apr.25, 2014

Peng Huaisheng shrugs off the impact from Peru`s suspension order on the output of Chinalco Mining`s Toromocho project. Photo: Nora Tam

Chinalco Mining, the non-ferrous and non-aluminium metals unit of aluminium giant Chinalco, is seeking acquisition opportunities in Latin America for copper projects with long-term return rates of more than 10 per cent.

Chief executive Peng Huaisheng said the region presented more development potential, especially Peru, where the company has been developing the Toromocho copper project since 2007.

"Our understanding is that Peru offers greater potential within Latin America," he said. "Peru has a strategy to catch up with Chile in metals and mining development, so it provides an overseas-investor-friendly investment environment."

Chile is the world`s largest producer and resource holder of copper, which is used widely in the power distribution and construction sectors. China imports about 70 per cent of its raw copper ore needs.

Hong Kong-listed Chinalco Mining`s US$3.5 billion Toromocho project, about 140 kilometres from Lima, started trial commercial production in December.

But power shortages, caused by a three-month delay in power connection, meant the company had to first process ore with lower copper content than originally planned. This caused the firm to slash in December its output target for this year to between 120,000 and 150,000 tonnes from 190,500 tonnes.

In March, heavy rainfall resulted in muddy water being discharged from the project`s quarry mine to a lake. Peru`s Ministry of Environment ordered on March 28 the project to stop operation for alleged non-compliance with environmental laws relating to water discharge. After building a water tank to collect rainfall and a draining system, the ministry allowed production to resume on April 11.

Peng said the suspension would not hinder the project from achieving the revised output target since it was not expected to reach full capacity utilisation until the third quarter.

He said his firm was "surprised" by the suspension order, but he would not comment when asked if he thought foreign and domestic firms had been treated differently on similar issues.

In July last year, Chinalco Mining decided to use US$120 million from its initial public offering proceeds, originally for acquisitions, towards phase two expansion of Toromocho.

The US$1.32 billion expansion will be 80 per cent-financed by bank loans and will raise annual output capacity by 45 per cent to 310,000 tonnes when completed in the first half of 2016.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year.  As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20th -23rd , 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Minmetals Group Buys Glencore Peru Copper Mine for $5.85 Billion

Source: www.chinamining.org   Citation: Bloomberg   Date: Apr.14, 2014

China Minmetals Corp., the state-owned metals trader, led a group that agreed to pay $5.85 billion for Glencore Xstrata Plc (GLEN)`s Las Bambas copper project in Peru as China seeks greater control over material supplies.

"It`s a good price, probably toward the top end of market expectations," Jeff Largey, an analyst at Macquarie Group Ltd. in London, said in a phone interview, adding the deal provides a good outcome for China. "This is a Chinese buyer, buying a very high quality copper asset."

Buying Las Bambas gives the group, which includes Melbourne-based MMG Ltd., control of a mine that`s forecast to produce 400,000 metric tons of copper a year from 2015, equivalent to 12.5 percent of 2013 imports of copper metal by China, the world`s biggest buyer. The sale also satisfies the final condition by Chinese regulators for Glencore`s $29 billion takeover of Xstrata Plc.

Glencore has "taken decisive steps to de-risk Las Bambas" since acquiring Xstrata last year, Ivan Glasenberg, the billionaire chief executive officer of Baar, Switzerland-based Glencore, said yesterday in a statement.

MMG holds a 62.5 percent stake in the group buying Las Bambas. The consortium also includes Guoxin International Investment Corp., with a 22.5 percent stake, and Citic Metal Co., with 15 percent, Glencore said.

The deal is subject to approval by regulators and by MMG shareholders. Minmetals, which holds about 73 percent of MMG according to data compiled by Bloomberg., has committed to vote in favor of the purchase, Glencore said.

Debt, Shareholders

Sale proceeds will immediately be used to reduce debt, Glencore said. The company will also look at reinvesting capital and returning some of it to shareholders.

Glencore may invest in copper projects in the Democratic Republic of Congo and Zambia or seek acquisitions, Paul Gait, an analyst at Sanford C. Bernstein Ltd. in London, said in an e-mail.

"The main story will be, I guess, what next for the deal flow," Gait said. Glencore`s London-Based peer Anglo American Plc (AAL) is "vulnerable," Gait said.

The sale comes as other global miners also divest properties, giving Glencore the opportunity to make purchases, Macquarie`s Largey said. The takeover of Xstrata was Glencore`s largest.

"Acquisitions have always been part of the company`s DNA," Largey said, noting Glencore could look at buying additional thermal coal assets as peers distance themselves from a tough market for the fossil fuel.

Mine Development

Development of Las Bambas was about 56 percent complete at the end of last year and there`s about $2.4 billion left to be spent on the site, Glencore said recently. It will cost an estimated $5.9 billion in total, Glencore Chief Financial Officer Steven Kalmin said in September. The mine is slated to start production in 2015.

China imported 3.2 million tons of copper metal and 10.1 million tons of copper ore and concentrate last year, data from the country`s customs authority shows. Its consumption totaled 9.83 million tons in 2013, or 47 percent of global demand, according to the World Bureau of Metal Statistics.

There`s 950 million tons of ore reserves at Las Bambas at 0.73 percent copper, Glencore said in February. The mine currently has an estimated life of 23 years though there`s potential to add further reserves, it said.

"China has to import 80 percent of its need for copper, which is massively used in infrastructure construction," Heng Kun, an analyst with Essence Securities Co., said before the deal was announced. "Buying copper resources is a strategic move for China to secure the raw material supplies."

Peter Grauer, the chairman of Bloomberg LP, parent of Bloomberg News, is a non-executive director of Glencore Xstrata.

BMO Capital Markets Ltd. and Credit Suisse Group AG are advising Glencore on the sale.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year.  As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20th -23rd , 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

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