[SMM compile] Copper Mine Grade will be greatly reduced in the future. mining enterprises will face the pressure of cost inflation and resource nationalism.

SMM, June 1 / PRNewswire-FirstCall-Asianet / according to a study by Mining Intelligence, not only will the next generation of copper reserves be reduced, but the grade of copper will also decline sharply.

At present, the average grade of mined mines is 0.53%, while the average grade of copper projects under development is 0.39%.

At present, the total resources of copper projects planned to operate are about half of the total resources of copper mines already in operation.

Jennifer Lennart, mining intelligence analyst and vice president of CostMine, warned that copper prices would rise.

"miners are battling declining copper grades and rising operating costs," says Jennifer Lennart.

"A lower grade means mining more rocks, in other words, more diesel and explosives, which makes it more expensive to produce metals."

At current prices, fuel, lubricants and explosives account for about 25 per cent of operating costs, and existing mines have been struggling under the pressure of cost inflation.

The average operating cost per tonne of copper was $14 in 2007 and $21 in 2017.

Copper demand is not expected to slow in the medium term, with BHP Billiton, the world's second-largest mining company, saying cost inflation and resource nationalism will continue to put pressure on mining costs.

Resource nationalism: the main characteristics of resource nationalism in the new period are that some mining countries restrict their mining development policies, such as levying or raising mineral rights gold and other mining taxes, and strengthening the control of foreign participation. Intervention in the exploitation of resources through political power rather than market demand in order to maximize the benefits of exploitation. Resource nationalism is a measure to maintain domestic economic growth and ensure people's livelihood under the condition of globalization, but it will also cause multiple risks such as the lack of protection of the legitimate economic interests of foreign mining companies.