Copper Industry News Roundup

SHANGHAI, Aug 11 (SMM) - A weekly update on the trending stories from the copper industry.

The chairman of the Peruvian Chamber of Industry, which represents the country’s mining companies, said that the industry is willing to discuss amendments to the tax stabilisation agreement with the new left-wing government that is seeking tax increases.

According to data from the Ministry of Mines and Energy, Peru has signed up to 25 tax stabilisation agreements since the 1990s. The new government led by Pedro Castillo is seeking to increase taxes on miners to fund social projects. Tax stabilisation agreements are designed to cushion investors from political or economic turmoil. Experts say they have laid the foundation for investing in some of the country’s large mines. High metal prices have increased taxes. Any amendments to these agreements will deal a serious shock to Chinese mining companies, including MMG Ltd and Chalco. Miners have planned projects of around $20 billion in the next five years. The government should try to ensure that these projects will not flow into other countries.

The Phase I beneficiation plant of Kamoa-Kakula copper mine with an annual processing capacity of 3.8 million mt of ore exceeded 80% of the designed capacity for seven consecutive days, and the recovery rate stood close to 82%.

The project has officially realised commercial production on July 1, 2021. Since the trial run at the end of May, the beneficiation plant has processed 500,000 mt of ore, and copper output has risen steadily. Average daily copper output has exceeded 500 mt, which is close to the designed steady-state production capacity of approximately 550 mt (an average of 200,000 mt per year). Around 32,700 mt of copper concentrate has been shipped to local copper smelters or exported to the international market. According to the project production guidance target, the Kamoa-Kakura project is expected to produce 80,000-95,000 mt of copper concentrate with copper content in 2021.