SMM Price Outlook for Base Metals on SHFE (Jul. 28, 2017)

Recently, heavy rainfall and high-altitude snowfall hit central Chile and the Atacama region, prompting multiple copper mines to initiate winter emergency measures. Los Pelambres, owned by Antofagasta Minerals, temporarily restricted access to the mine site and preemptively scaled back non-critical operations, though no full production suspension has been reported so far. Andina, operated by Codelco, suspended surface operations, while El Teniente halted open-pit ore transport at one point due to hillside snow accumulation. Among these, Caserones was the most significantly affected. Lundin Mining stated that the mine has been suspended since July 18 due to heavy snow, restricted road access, and an on-site power outage. It is currently relying solely on backup generators to sustain critical activities, and production will resume once power is restored and road access improves. As of July 24, the company had not yet issued a production resumption announcement, but Lundin Mining maintained its full-year production guidance. Overall, this round of disruptions was concentrated in central Chile and some high-altitude mining areas. The major copper mines in the far north generally maintained operations, and a nationwide large-scale production halt has not materialized. In the near term, attention should continue to be paid to the timing of Caserones' production resumption and the progress in restoring road access and power at the mine site.

According to foreign media reports, the Democratic Republic of Congo has formally endorsed a public-private partnership with Portuguese construction group Mota-Engil to rehabilitate its strategic national railway network. The infrastructure project focuses on renovating the dilapidated rail section passing through key Central African mining hubs, including Kolwezi, Tenke, and Lubumbashi, linking them directly across the border to Angola’s Port of Lobito on the Atlantic coast. The agreement forms a critical leg of the US-backed Lobito Corridor initiative, designed to shorten transit times and lower freight costs for essential energy-transition minerals exported to Western markets. Negotiating a long-term operating concession of up to 30 years, Mota-Engil in partnership with global trading firm Trafigura aims to establish seamless cross-border freight operations. The rail upgrade is positioned to reduce logistical bottlenecks across the Copperbelt, supporting the expansion of regional mining production while advancing diplomatic efforts to build resilient, Western-aligned mineral supply chains.

According to foreign media reports, JSE-listed copper producer Copper 360 has reached a major milestone in its $50 million underground development program at the Rietberg mine in South Africa's Northern Cape. Underground excavation has successfully passed the halfway mark of its 544-meter development target, setting the company on track to intersect its primary ore body on the 300 Level within the next 90 days. This progress marks a strategic shift for the mine as it transitions from capital-intensive waste development into revenue-generating hard-rock mining. Reaching the ore block will provide an immediate feed of copper-bearing material directly to the upgraded Modular Flotation Plant 2 (MFP2). The alignment between underground production and processing capacity is expected to ramp run-of-mine output up to approximately 700 tonnes per day, fully utilizing the plant's installed capacity and delivering higher feed grades alongside improved recoveries. To secure long-term operational flexibility, the company plans to concurrently extend the underground haulage decline down to the 350 Level. This move will open additional mining areas and support a sustained long-term production profile beyond the initial ramp-up phase. Investors responded enthusiastically to the development, driving Copper 360’s shares up by more than 10% on the Johannesburg Stock Exchange following the operational update. The project reinforces the company's efforts to establish a fully integrated copper production footprint in the region.