Canadian mining company Turquoise Hill Resources Ltd. It was announced that the operator of its (Oyu Tolgoi) copper and gold mine in Oyu Tolgoi, Mongolia, had been affected by the force majeure of the epidemic and that copper concentrate shipments to Chinese customers had been suspended as a result of novel coronavirus epidemic prevention measures at border crossings.
Its headquarters said Oyu Tolgoi LLC, which owns 66 per cent of its shares, reported that two COVID-19 cases had been confirmed in the region, with a total of nearly 10000 tested negative.
, Turquoise Hill said earlier this month that the Oyu Tolgoi (Oyu Tolgoi) mine is expected to produce 170000 tons of copper concentrate and 525000 ounces of gold concentrate through open-pit and underground ore processing in 2021.
According to the report, nearly 150000 tons of copper concentrate and 182000 ounces of gold concentrate were produced in 2020.
The company said its open-pit mine would continue to operate without interruption, but its $6.75 billion underground mine project was suspended during testing and increased travel restrictions, hampering the flow of people.
By the end of 2020, the company reported spending US $4.5 billion on underground mines and was expected to achieve sustainable production by October 2022.
SMM imported copper concentrate index
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Due to the epidemic situation of novel coronavirus, the Ganqimodu Port of OT Mine has not been opened at present, and only the copper mine in the bonded warehouse is shipped out. Most copper traders said that their positions were still tight, and under the background of downward bidding prices in mines, more offers were made at 20 high. The smelter said that although the current sulfuric acid price rose, it made up for the pressure on some copper concentrate processing fees. however, the processing fee of less than 30 US dollars per ton is still difficult to accept, and the game between buyers and sellers on processing fees is still fierce.
Since the beginning of the year, the spot TC of copper concentrate has continued to decline. According to SMM data, the weekly index of copper concentrate imported by SMM was 31.90 U.S. dollars / ton on March 26, 2021, the lowest level in more than a decade. Lower TC / RCs is squeezing smelter profits. According to SMM data, since the second half of 2019, the spot smelting break-even index of copper concentrate in SMM smelter has been in a state of loss and gradually expanded, with a loss of 1223 yuan / ton in January 2021. The pressure on the smelter is also increasing.
