SHANGHAI, Sep 8, SMM--
The Australian copper ore project (Lady Annie) of China Science and Technology Mining Group Limited (CST) resumed production since September, 2010, and is expected to specialize in refined copper production in December, 2010.
Besides, CST will launch the copper ore project in 2010 and 2011, and plans to realize full production in 2013.
CST transformed to a resource company formally following the acquisition of 100% equities from the Lady Annie (LA) Copper Project and 70% of right from the Mina Jsuta (MJ) Project.
Damon, CEO of the company, presented great confidence to the company’s development prospects and believed that the rising trend for copper price has already been for sure since copper is one of the world’s rare resources.
According to the commodity surveys released by major foreign banks such as Chartered, Morgan Stanley, Goldman Sachs, Credit Suisse etc., SMM expects that demand for copper in China will rise 5%-8% in future, and copper prices in the next two or three years will stay above USD 3.5 per pound.
Damon said that the Australian LA project has restarted mining operations from September, 2010, and is expected to produce 25kt-30kt copper per year.
The Peruvian MJ project is expected to put into production in 2013, and will reach a capacity of 110kt/yr when completed. Based on the company’s previous reports, production costs were only USD 2,712/mt and USD 1,984/mt respectively under the LA and MJ project, while copper prices in the following two or three years will not be lower than USD 7,700/mt in many foreign banks’ predictions.
If copper will sell at the current level of USD 7,500/mt, analysts expect that the copper project will bring the company an annual profit of around USD 570 million when completely put into production.