Issuu

SECOND QUARTER 2020

VOLUME 10 |2

See Directory pp21-23

TEN YEARS OF COPPER JULY 2011

VOLUME 1 | 1

JULY/AUGUST 2012

VOLUME 2 | 3

OCTOBER/NOVEMBER 2013

VOLUME 3 | 4

JANUARY/FEBRUARY 2014

VOLUME 4 | 1

5TH ANNIVERSARY ISSUE

VOLUME 6 | 2

See Buyers Guide pp26-27

Key Words: The future is not a commodity - neither are our grandchildren

People: Ankh and Outotec award winners

Key KeyWords: Words: Opportunity The future isinnot a multi-metal commodity -recycling neither are our grandchildren News: Integrated Acquisitions and production looms projects mostly - tracking the moving forward migration route of smelter Chinaprojects Review: Project roundup capacity Spotlight: and Aurubis and Luvata targets in the first of a wave 11thof World strategic Copper realignments? Conference The Review ECI calls for Pictorial better EU resource efficiency Coppermeasures Scrap Recycling GIFA Preview – Xstrata takes industry oncopper valuables suppliers Metallo interview In Profile: Copper Recycling Bob Kickham Conference - with SDI Laheritage Farga Comes a responsibility Cold Rolling Fröhling in China report China - ROCS in every issue Sensor benefits with support from Beijing Buyers Guide Antaike Refractories Insulation An inspiring event and in May – will it new entry revitalise a copper niche Daily Lives sector? Globetrotting People: electrowinning Ankh and Outotec consultant on winners a award handshake

Copper China a new addition to the Chinese show calendar

25th Copper China International a new addition Copper to the Chinese event inshow Hamburg calendar

Integrated production looms - tracking the migration route of smelter projects Spotlight: Aurubis and Luvata in the first of a wave of strategic realignments? The ECI calls for better EU resource efficiency measures GIFA Preview – copper industry suppliers In Profile: Bob Kickham with heritage Comes a responsibility China report in every issue with support from Beijing Antaike An inspiring event in May – will it revitalise a copper niche sector?

Key KeyWords: Words: Views of isinnot a Opportunity The future Oyu Tolgoi -recycling multi-metal commodity neither are our grandchildren News: Mergers create Integrated Acquisitions and synergies production looms projects mostly Brazil invests - tracking the moving forward Half-year migrationupdates route of smelter Chinaprojects Review: Special Reports: Project roundup Semis gathering capacity Spotlight: and Safety and Aurubis and Luvata targets Maintenance in the first of a wave 11thof World strategic 8th COPPER/Cobre Copper realignments? back to Santiago Conference Optimised The Review ECIsmelter calls for Pictorial concentrate supply better EU resource efficiency Coppermeasures Scrap Rolling- quality Recycling control issues GIFA Preview – Xstrata takes expertly solved industry oncopper valuables suppliers Stewart Alex Metallo interview reveals the art In Profile: Copper Recycling ofBob inspection Kickham Conference - and analysis with heritage SDI La Farga

Key KeyWords: Words: Opportunity Copper The future 2013isinnot a impressions multi-metal commodity -recycling neither are our grandchildren News: Integrated Acquisitions Turkey business and production looms projects Upstream mostly efficiency - tracking the moving Africa and forward Asia migration route of gatherings smelter Chinaprojects Review: Special Reports: Project roundup capacity Spotlight: Semis will meet and Aurubis and Luvata in Mumbai targets in the first of a Copperbelt latest wave 11thof World strategic realignments? 8th Copper/Cobre Copper First hand Conference The Review ECIbycalls for Interviews Pictorial betterLillo EU resource Marta efficiency Coppermeasures Scrap Refinery Recycling GIFA Preview – power and Xstrata takes industry maintenance oncopper valuables suppliers Refractories Metallo interview reach In Profile: Copper that Recycling the Bob Kickham Conference highest - with SDI specifications Laheritage Farga Comes a responsibility Cold Rolling Electrowinning Fröhling & Electrorefining in China report China process - progress ROCS in every issue Sensor benefits with Contracts: support from Beijing Buyers Guide Hamburg refit Antaike Refractories Bascur awarded and An inspiring and Insulation Rod strip event in May – will it new entry revitalise Rollingaspray copper niche Daily Lives systems sector? Globetrotting development People: electrowinning Ankh Company and Outotec consultant on Profile Schenck Process winners a award handshake can handle it 25th Copper China a new Buyers Guide International addition All Copper topurchasing the Chinese event needs fulfilled inshow Hamburg calendar

Comes a Copper Chunlei responsibility Cold Rolling gets rolling Fröhling in Hot tinning dip China report China - ROCS Mill contracts in every issue Sensor benefits support from with EVENTS Buyers Guide Antaike –Beijing Three reviewed Refractories and four previewed Insulation An inspiring event and May – Review: will it new entry in China revitalise a copper 2013 forecasts niche Daily Lives sector? and projects Globetrotting People: electrowinning Company Ankh and consultant on Profile – Outotec winners a award handshake FLOGEN STAR gives recognition 25th Copper China International addition a new Buyers Guide – Copper to the Chinese event New entry in inshow Hamburg calendar heat recovery

METALLIC MEDIA LTD

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“Over the last 10 years Copper Worldwide has become a valuable source of news, insights and information about the international copper industry - in particular for the copper processing industry. At the IWCC we have been delighted to regularly contribute to Copper Worldwide magazine, and continue to see the publication as an important way to promote our work and events to the wider copper industry. I expect that under the leadership of Editor Chris Holding, Copper Worldwide will continue to go from strength to strength in the next 10 years as well.” - Mark Loveitt, IWCC President

“The SMS group team would like to congratulate to Chris Holding and Copper Worldwide for a decade’s work by the magazine in support of the Copper Industry. The accompanying good reporting of innovations and technologies by the magazine was always important for us and we appreciate the good cooperation. Wecontinue to wish you all the best for the future.”

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We have been supplying the material for modern energy for 150 years. When innovations impact the world, Aurubis copper is there. This was true in 1866, the year our company was founded, and is still the case today. With our 150th anniversary, we are therefore also celebrating a metal that enables progress. Discover our history at www.150-years-of-the-future.com

n Key Words: Measuring innovation n News: Aurubis is 150 Klopper returns KOV pit wall Latest figures n Primary Smelting: Acid plant trend Bale honoured Roaster for Glogow n Spotlight: South Korea examined by Barnes n Managerial Review: Strategies and projects n Copper in Australia: Phillip Mackey on a nation with copper pedigree n Melting and Casting: Otto Junker in China supply n Events: CESCO Week Wire 2016 Review ICC meets ICSG African Events Coming in 2016 n Contracts: Arriagada appointed MINO in Turkey buntmetall press Jacques at Rio n Buyers Guide Need help with new challenges? ISSN 2046-9438

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“The International Copper Association (ICA) works to develop and defend copper markets. For almost a decade we have valued the support received from Copper Worldwide magazine and Chris Holding, its editor. Copper World0wide gives ICA the opportunity to bring important industry issues to a larger audience, and we look forward to working with this essential resource for many years to come.” - International Copper Association (ICA)

“This year Copper Worldwide magazine is celebrating their 10th anniversary and Continuus-Properzi is happy to share in this joyous occasion. This publication has been our gateway to the world allowing us to promote our engineering and technology which is the result of our most treasured asset, our Research and Development Department. This is simply a tribute to the friendship that has evolved between Continuus-Properzi and Mr. Chris Holding, a man who turned his passion into a successful business. We wish him the best of luck for the next 10 years!”

- SMS group

- Continuus-Properzi Team

“Copper Worldwide gives a great and still compact overview of all activities happening in our industry all over the world. For me personally, Copper Worldwide is the magazine where my number of read articles is by far the highest regarding the offered articles. Another very special highlight is the annually updated wall map of all copper smelters and refineries in the world.”

“Copper Worldwide offers a valuable service to the copper sector with its magazine focusing on copper production and processing which provides a convenient way to keep up with current news and developments in the industry. ALTA has worked with Copper Worldwide since 2015 for advertising and publishing and they have co-sponsored the annual ALTA conference since 2015. We look forward to continuing this important partnership for years to come.”

- Dr. Andreas Filzwieser, Managing Director, Mettop GmbH

“Copper Worldwide Magazine is a complete, reliable, comprehensive and continuously updated source of information regarding not only the worldwide copper and copper alloys market but also the latest technologies of copper alloys processing and copper products manufacturing. The accurate preparation of each issue of the Magazine and the variety of contents of the articles make Copper Worldwide Magazine an indispensable reference for all the industries, engineering companies, equipment suppliers and research organisations.” - Geminiano Chiesa, Business Area Manager, MINO S.p.A. FOURTH QUARTER 2018

VOLUME 8 |4

FIRST QUARTER 2019

VOLUME 9 |1

See Directory pp25-27

n Key Words: Energy transition Chile example n News: Market forecasts FCX performs Glencore 25% EU debates n Smelting: Mackey on papers Best practice New solutions Experiences n Spotlight: Extraction 2018 full review n Rolling: Danieli tips Aurubis FRP n Thermal Processes: Annealing tips Anode lining design n Inspection: Drone power n Safety: Acid mist capture options n Events: JOGMEC / ACW IMARC / IWCC IERC / ICC / WCC n Contracts: Ecuador plans Norilsk grows New appointees n Supplier Directory New entries and new logos

Visit us at World Copper Conference 8–10 April 2019, Santiago Chile

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-A llison Taylor, Conference & Exhibition Manager, ALTA Metallurgical Services

“Copper Worldwide has established itself as a welcome addition to the existing magazines. Personally, I value most the up-todate information about the industry, presented in a slim design reduced to the essentials. I wish Chris all the best for the future and I look forward to the next issues of his magazine.” - Dr. Stefan Konetschnik, Managing Director, UrbanGold GmbH

A huge thank you to everyone for all your kind comments

SECOND QUARTER 2019

VOLUME 9 |2

See Directory pp21-23

See Directory pp25-27

n Key Words: Will it be a WCC to remember? n News: Roland Harings MKM and KME Latest figures Majors news n Smelting/Refining: Mackey on why Chagres Smelter has lasted over 100 years n Spotlight: Discover your digital twin n Rod Tube Wire: Barnes on Taiwan Latest stories n Melting/Casting: La Farga inaugurates new line n CESCO Week: Programme news

n Key Words: Copper Mark Sourcing right Thinking whole n News: Udokan supply Mayr at IWCC New mergers Latest figures n Smelting: KGHM upgrades Sulphide ore treatment n 18th WCC Review: CRU at 50 Special Q&A n GIFA-GMTN 2019: Three pages of exhibitor profiles n Managerial: Antofagasta BHP / FCX Southern Copper n Operational: CEEC Innovation

n Integration: ABB optimises mine activities n Events: IERC 2019 32nd ICC What is coming n Contracts: CRMs on the move New orders placed Expansions n Supplier Directory Get what you need right here

n New Frontiers: Vancouver for COM + Copper n Events: IWCC TS Shanghai TMS 2019 ALTA summary n Contracts: Ningbo mills Resolution Copper Executive moves n Supplier Directory Always get what you want here

THIRD QUARTER 2019

VOLUME 9 |3

CUSTOMIZED SOLUTIONS In times of rapidly changing markets, you want your business partner to deliver solutions tailored to your needs. We listen. We learn. We deliver: in close Collaboration with you, we design simple customized solutions. Fast and flexible, we implement advanced technologies in line with your requirements. Whatever you envision, we will make it happen for you.

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n Key Words: Vancouver barometer favourable n News: Steam plant Oyu Tolgoi RMI and ICA New reports n New Frontiers: COM + Copper EMC 2019 Cu technologists n Hydrometallurgy: New filters Tailings in focus n Primary: Flash smelting turns 70 n Recycling and scrap: SMM looks at China scrap n Products: High bay storage In-field analysis n Event Previews: LME Week Asia Copper Week IMARC SIPS 2020 Schedule n Contracts: Andritz moves China projects New equipments El Teniente n Supplier Directory Always get what you want here

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FIRST QUARTER 2020

VOLUME 10 |1

See Directory pp25-27

ISSN 2046-9438

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09.11.17 11:32

See Directory pp21-23

THE MARKETPLACE LEADER AND A NAME YOU CAN TRUST IN

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Phone: 770-832-4108 Fax: 770-838-6600

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n Key Words: COVID-19 effect Scrap flows E-scrap outlook n News: Mine forecasts Recycled trade Smelter updates Key appointees n Electrorefining: Anode makeup Capacities Market n Tube and wire: Suppliers and processes n Primary: Zijin profile Steam drying n Energy Efficiency: Smelt well Renewables n Rolling: Turkey and Taiwan contracts n Events: Cesco / WCC Wire Tube 2020 Digital Mines ALTA at 25 GDMB work n Contracts: Project plans Appointments MINO mill Amer Xinjiang n Supplier Directory Find what you need in here

n Spotlight: COVID-19 ICSG Insights CRU webinars n News: Role of copper Chinalco speaks Force majeure Market effects Aurubis buys n 21st Century Smelting: Cu Pb Zn flowsheets n Managerial: Three pages of summaries n Russia: Expert analysis n Sustainable Supply: CEO tips SMS group in NFM n Rolling: Mill and annealing orders placed n Events: New calendar 16 upcoming events in 2020 and 2021 to plan for n Contracts: SCC in Mexico Miners move PPE Wieland acquires n Supplier Directory Online learning section

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08.03.2019 07:53:29

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PROPERZI TECHNICAL CONSULTANCY

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CONTENTS | 1

w ww.copper worl dw ide. co m

News

4,5

Associations champion copper in pandemic; Chinalco wants smelting curbs; South America hit by COVID-19; Force majeure liability; Crisis-related market activity

Metallo acquisition; Jiangxi Copper reports Q1; Market data and forecasts

Spotlight - COVID-19

ICSG gives insight and estimates; CRU hosts impact webinars

With the JSC Uralelektromed (UMMC metallurgical division) 160 ktpy second stage of the tankhouse completed, the permanent cathodes output doubles to 320 ktpy (see Page 13)

Inside this issue Chuquicamata Subterannea, which commenced operations in 2019, is a strategic project that represents an important part of Codelco’s future (see Page 9)

SUSTAINABILITY

Crisis handling tips from former mining CEOs Albanese and Carroll

MATERIALS HANDLING

3,8

Copper lead and zinc synergies with P. J. Mackey

MANAGERIAL REVIEW

9,10 & 11

Codelco cleans up; First Quantum

Kopar’s heavy-duty design;

and Antofagasta Q1; BHP steady FY; FCX refines

FEECO’s rugged heap leach range

plans; Glencore and KGHM 2019 summaries;

Product Information

21ST CENTURY SMELTING

Ventilator splitter design; IsaMill maintenance app; Metal chute sorter

Rolling Update

Northern Copper selects MINO; Ningbo relies on Otto Junker; 20 CRM orders for SMS group and Andritz

Contracts & People

Southern Copper in Mexico; Metso linings for RCC; Miners become PPE movers

Wieland acquires Scott Brass; Looking after contractors; Renewables supply grid

Supplier Directory

21-23

Includes online learning section

MMG Peru issues; Southern Copper excels in 2019; Katanga and Vale Q1; Kamoa-Kakula update; Rio Tinto cautious; Vedanta half year to September

RUSSIA INSIGHT

12,13

Jonathan Barnes gives his verdict; RCC sets out ambitions

SUSTAINABLE SUPPLIER

18,19

The SMS group brings excellent design concepts and service

solutions to the Non-Ferrous Metals Industry

OPERATIONAL EFFICIENCY

Modernising a copper shaft furnace

Copper Worldwide Vol 10 No 2

RESCHEDULED EVENTS

A new look calendar of events up to mid-2021 at time of publication

COVER A selection of Back Covers and Testimonials

Opposite Page Properzi began in Copper Worldwide by talking about one of our core businesses: systems related to the production of copper wire rod from cathodes (CCR Copper Lines for ETP rod) and from Cu scrap (CCR Copper Lines for FRHC rod). This naturally led to a description of our ‘combined CCR systems’ designed for the exploitation of both raw materials and the ability to alternate production between ETP rod and FRHC rod. Subsequently we also have had the pleasure of presenting ContinuusProperzi as a ‘furnace manufacturer’ when we showcased one of the patented designs of our President, Mr. Giulio Properzi: the 250-ton refining furnace with the innovative roof-top charging system. We also featured our Self-Annealing Microrolling® (SAM) method based upon the patented Properzi Microrolling® technology. The SAM method replaces the conventional drawing/annealing processes while offering significant energy savings. www.properzi.com

6 | SPOTLIGHT – COVID-19

www. c op p e r wor l d w i de. co m

Pandemic affects 2020 copper usage forecast The latest ICSG Insight into the ‘Global Impact of COVID-19 Related Lockdowns on Industrial Uses of Copper and Recycling’ released in May says the first half of 2020 will be remembered by a strong deterioration in the downstream demand for copper.

Copper semis

Global GDP is expected to contract 3% after a forecast of growth over 3% in January by Intergovernmental organisations. The impact on copper demand only in Q1 2020 is revealed in the fall in use of copper wire rod, which represented 56% of all copper end uses worldwide in 2019. In Q1 2020 the Asia Pacific region was the most affected, with a 25% fall in sales of wire and cable. In the European Region and MENA, sales fell 6% in Q1, but Q2 expectations are pointing to a 2 digit annual contraction. In North America the first quarter was good with wire rod demand up 4%, but expectations were not so good for Q2. In Latin America demand fell 15% in Q1 via commodity price adjustments. China’s automobile production fell 45% y-o-y in Q1 2020, whilst electric grid investment fell 27%, air conditioner output fell 28%, and refrigerator output fell 20% respectively. In the period 1-10 May 2020, South Korean exports fell 46% y-o-y, and imports fell 37%. Japanese

imports of scrap fell 36%, and less fabricated copper products were exported in Malaysia, Russia and Spain in the first quarter. There was a contraction of 29% in Italian industrial production in Q1, followed by France (-16%), Germany (-14%) and Spain (-13%), with European copper use expected to fall in Q2 2020. Exports of fabricated copper and alloys fell in Q1 in Belgium, Poland and Germany. In the US, housing starts fell 9% in Q1 and in Q2 the fall might be in 2 digits, whilst household spending in transport fell 33% in Q1.

Other streams

Copper smelters out of mining countries are facing a massive shortage of concentrates in H1 2020. That eventually can be solved in part if concentrate stocks in South America are exported. Total y-o-y Q1 exports of copper concentrates fell from Chile (-8%), Peru (-10%), from Australia (-8%) and Brazil (-16%). Ports in Peru closed all of April, and not all mines operated at low capacity for stocks. Global trade of copper scrap fell 400 kt in Q1, but scrap availability fell 550 kt as lower prices hit smelter and fabricator demand. Traders of recycled copper, scrap and copper waste left the market when prices fell. Imports of copper scrap to China fell by 37% in Q1 on ports closures,

with Germany’s imports down 16%, and a 36% fall in Japan and Malaysia. Refined copper output produced from concentrates is sustaining the supply of refined copper in H1 2020. It will be difficult for global copper use to return to the 29.9 Mt reported in 2019. Preliminary estimates for the drop in 2020 global end use of copper are between -1,4 Mt and -2.7 Mt in the less optimistic scenario.

Upstream

The ICSG Secretariat Briefing Paper - No 18 (Insight) was released on 21 May entitled ‘The Impact of the COVID-19 Pandemic on World Copper Supply’. The April meetings of the ICSG were cancelled, so the spring forecast was deferred. The Insight is an update on the copper supply and demand impact and on ICSG’s last forecast made in October 2019. In summary, global mine production in 2020 is likely to be about 950,000 tonnes copper lower than the ICSG forecast in October 2019. World output is now expected to decline by about 3% compared to 2019. Global refined output will be approximately 1.1 Mt lower than the Group forecast in October. Consequently, world refined production is now expected to remain unchanged for the second consecutive year. www.icsg.org

Covid-19 impact webinars from CRU CRU Events published a series of pandemic webinars, aimed primarily at would-be World Copper Conference 2021 attendees, from April to early May. Chief Economist Jumana Saleheen delivered ‘Global pandemic triggers global recession’ on 6 April, then Principal Analyst Erik Heimlich presented on ‘Developments in copper supply’ on 23 April, before Director of Copper Research and Strategy Vanessa Davidson concluded with ‘Copper market outlook’ on 7 May: Jumana’s global macro-economic forecast observed that, as one third of the world’s population were put in lockdown in March, a sharp fall in demand and supply chain disruption ensued. Whilst China’s PMI has bounced back rapidly, China will not see demand in Q2 from the rest of the world (RoW). The US should see positive growth by Q4 of 2020, but the EU is forecast to take longer still to recover. The pandemic has halted a 126-month record US economic expansion, after around 33 states issued ‘shelter-in-place’ orders in March. A -0.2% change in GDP is forecast for 2020. The Eurozone was already vulnerable, and a -5.2% GDP contribution is forecast for Q2. In global automotive production, 2020 will see a 10 per cent fall, in a third year of decline. However (from 3rd Webinar), global copper demand from EV’s will rise from 417 kt in 2020 to 1.1 Mt

in 2025, and 2.5 Mt in 2030. Around 75% of this copper is in the vehicles. Erik’s presentation calculated a 22.2% fall in Chinese refined copper consumption in Q1, whilst the RoW is forecast to see an 11.9% fall in Q2. The supply of copper scrap has declined as prices have fallen, increasing demand for primary copper. As Covid-19 has limited scrap recycling rates (from 3rd Webinar), and imports are blocked, a 20 per cent fall in Chinese scrap use in refined production and semis is forecast this year (RoW 11%). Mining has allowed to continue in most lockdown countries except Mexico. Peru imposed an early lockdown, but this has impeded mining activity. As at 5 May (from 3rd Webinar), around 333 kt impact from mine disruptions, notably in Peru (c. 105 kt), had occurred since mid-March, and around 190 kt impact on smelter output, mainly due to the effect of smelter acid storage and shipping restrictions. Whilst countries like Australia, Kazakhstan and Mongolia had suffered only minor disruptions in the period, the estimated global production losses due to Covid-19 will add 3-4.5% of extra mine output disruptions in all of 2020, representing 600 kt in total. Project developments being put in stand-by will affect future supply. Vanessa’s webinar described the havoc caused by Covid-19. The typical seasonal pattern

Copper Worldwide Vol 10 No 2

whereby stocks are accumulated in the first few months of the year and then destocked is holding. Chinese cathode import premiums have already recovered to exceed 2019 levels. RoW refined copper demand is set to fall by 5.5% in 2020. Chinese demand fell by 22.2% in the first quarter, leading to an estimated annual 5% drop in 2020. Global refined copper consumption for 2020 is now thought to be 22 Mt, a 1.8 Mt reduction from CRU’s January estimates. Demand to 2025 will be lowered enough by the after effects of the pandemic to remove the possibility of supply deficits in the mid2020s. India is forecast to achieve robust consumption growth of at least 10% per annum from 2021 to 2024, whilst ASEAN will see 4% annual growth in the period. Chinese smelters remain vulnerable to mine closures in other parts of the world, as mining majors are reducing 2020 capex and ongoing projects are being delayed. Around 159 kt of price-related cutbacks to mine output have also been announced as at 5 May, and more are expected in H2, rising to an overall 340 - 445 kt level. A 5% reduction in global mine output is expected for 2020, and a 3% reduction in refined production (China -2.5%). There is a 700 kt drop to the 2024 output forecast. Whilst an 850 kt surplus of cathode is forecast for 2020, prices are likely to remain around US$ 5,000 per tonne. www.events.crugroup.com

NEWS | 7

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Metallo acquired by Aurubis Group With the formal closing of the transaction on 29 May, Metallo is being fully consolidated into the Aurubis Group as of 1 June 2020 for a purchase price of EUR 380 million. The acquisition represents an important step in the implementation of Aurubis’ multimetal strategy and toward its goal to become one of the most efficient and sustainable smelter networks in the world. The EU competition authorities issued their unconditional approval of the acquisition on 4 May. The name Metallo, an established name on the recycling market, will be retained. With the Metallo acquisition, the

The Metallo site in Beerse, Belgium.

Aurubis Group is gaining another company in Belgium (Beerse with about 450 employees) in addition to Olen, as well as a company in Spain for the first time (Berango in the province of Biscay with about 90 employees).

Roland Harings, Aurubis AG E xe c u t i ve B o a rd C h a i r m a n , explained: “We will integrate the Metallo production sites to form an optimised production network of our plants. This will lead to more than 1 million tonnes of recycling capacity for secondary material.” Dirk Vandenberghe, CEO and Director of Metallo, added: “Metallo specialises in processing recycling materials with low metal contents, with a focus on tin, lead, nickel, zinc, and copper. We have a ‘zero waste’ approach - even as the compositions of the input materials become increasingly complex. As

Latest ICSG market data released According to ICSG data for February 2020 issued on 25 May, world mine production increased by about 2% in the first two months of 2020, with concentrate production increasing by 1% and solvent extractionelectrowinning (SX-EW) increasing by 5.8%. Mine production in Chile increased by 4%, recovering from production constraints in early 2019. Chilean SX-EW output increased by 8%. Production in Peru declined by 4% mainly due to operational issues and adverse weather affecting few major mines. In the Democratic Republic of Congo (DRC), production increased by 5% as production from ramp-up mines more than offset temporary closure of a major mine in December 2019. Official data indicates that Chinese copper mine production declined by 12% mainly due to temporary suspension of some mines related to COVID-19 restrictions. In Indonesia, production grew by 14% as output levels are improving from the transition of the country’s major two copper mines to different ore zones in 2019. Production in Panama was higher as the country only started producing copper in March 2019. Preliminary data indicates that world refined copper production increased by about 0.6% in the

Roland Harings (left) is CEO of Aurubis AG Dirk Vandenberghe is CEO of Metallo

part of Aurubis, we want to continue processing all of the input materials into valuable products, making an important sustainability contribution as one company.” www.aurubis.com

JCCL latest

first two months of 2020 with primary production (electrolytic and electrowinning) up by 2% and secondary production (from scrap) down by 6%. Chilean electrolytic refined output increased by a significant 30% as in the comparative month of 2019 production was negatively affected by temporary smelter shutdowns whilst undergoing upgrades to comply with new environmental regulations. Total Chilean refined production (including EW) increased by 14.5%. Chinese refined production was negatively impacted by temporary shutdowns related to COVID-19 restrictions, tight scrap supply and acid market constraints. In Africa, production in the DRC was up 5% but production in Zambia declined by about 20% due to operational issues and temporary shutdowns. Japanese refined production increased by 7% mainly recovering from maintenance in the same period of 2019. Preliminary data indicates that world apparent refined copper usage declined by about 2% in the first two months of 2020. Chinese apparent usage declined by 4% mainly as a consequence of lower Chinese refinery output as net refined copper imports increased by 9%. Real Chinese industrial usage was negatively impacted by COVID-

19 related production suspensions at semis fabricators. Among other major copper users, refined usage declined by 2% in Japan and remained essentially unchanged in the EU and in the United States. The preliminary world refined copper balance in the first two months of 2020 indicates 130,000 t surplus. In developing its global market balance, ICSG uses an apparent demand calculation for China that does not take into account changes in unreported stocks. The Refined World Balance Adjusted for Chinese Bonded Stock Changes, based on an average estimate of changes in unreported inventories provided by three consultants with expertise in China’s copper market, indicated a market surplus of about 220,000 t. As of the end of April, copper stocks held at the major metal exchanges (LME, COMEX, SHFE) totalled 549,261 t, an increase of 246,874 t (82%) from stocks held at the end of December 2019. Stocks were up at the LME (+74%), SHFE (+109%) and COMEX (14%) respectively. The ICSG Copper Bulletin is available for sale (annual s ub sc r ip tio n EU R 550 / EU R 850 for orders originating from/ outside institutions based in ICSG member countries).

According to the Q1 2020 Report issued by Jiangxi Copper Co., Ltd. (JCCL), the quarterly operating revenue was 56.21 bn yuan and increased by 15.04% y-o-y. The Group’s main production and operation goal is to produce 1.65 mt of copper cathode, 77 tonnes of gold, 1,025 t of silver, 4.788 Mt of sulphuric acid, 207,500 t of copper in concentrates, and 1.63 Mt of copper rods/wires, etc. During the reporting period, Ph a s e I I of t h e n ew l y b u il t 350,000 tpy copper rod project of Jiangxi Copper (Guangzhou) C o p p e r P ro d u c t s C o m p a ny Limited has been successfully put into operation. The construction of the 220,000 tpy copper rod production line project of Jiangxi Copper North China (Tianjin) Copper Co., Ltd has started, a nd the indu s tr i a l l ayou t of the company in the Bohai Rim region has fur ther improved. The construction of the pha se III 15,0 0 0 tonne s per year lithium-electric copper foil production line of the Jiangxi JCC Yates Copper Foil Company Limited has initiated, by which the company has taken a new step into the high-end copper processing products field.

www.icsg.org

www.antaike.com

demand might increase by 4.4% to 23.625 Mt. In the EU-28, demand for refined copper in 2019 was 2.967 Mt, down 8% compared with 2018. A further decrease of 6.4% is now forecast for 2020 for this region. However, in 2021, demand might increase by 5.4% to 2.927 Mt. For China, in 2019 the IWCC estimates reported (or real) demand for refined

copper up 2.8% to 12.209 Mt. For 2020, the forecasts currently suggest reported demand of refined copper in China might decrease by 2.8% to 11.87 Mt. For 2021, reported demand is expected to increase to 12.175 Mt. Present economic uncertainty means these forecasts have wider tolerances than usual.

IWCC short-term forecasts for copper Amid the COVID-19 pandemic’s economic disruption, the International Wrought Copper Council (IWCC) has completed its regular six-monthly review of the copper market and has finalised its forecasts (see also IWCC item on Page 4). Using publicly available information and ICSG input, the supply side data shows that refined copper production in 2019 was 23.47

Mt. For 2020, it is forecast to be 22.91 Mt and might be 24.30 Mt in 2021. The demand side forecasts were prepared by the IWCC. Global reported refined copper demand in 2019 was 23.915 million tonnes, up 25 kt on that for 2018. For 2020 the forecasts suggest that refined copper demand might be 22.625 Mt, a decrease of 5.4%. For 2021,

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Freeport-McMoRan revises operating plans Along with its first quarter announcement on 24 April, FCX assessed its near-term operating plans, and looks to significantly reduce all elements of costs and capital spending and adjust mine plans and corresponding mining and milling rates to maximise cash flow at lower prices. Richard C. Adkerson, President and Chief Executive Officer, advised: “I am confident that we will overcome the current challenges and ‘prove our mettle’ as we have effectively done in previous periods of economic weakness.” The 2020 mining and milling rates for North America have been reduced by approximately 20 percent, resulting in

Richard C. Adkerson is in his 17th year as President and CEO of FCX

a projected 12 percent decline in North America copper sales. FCX has also deferred approximately US$ 0.3 billion in capital projects from 2020 to future periods for the

North America copper mines. The initial phase of the Lone Star copper leach project will still be completed, with first production expected during H2 of 2020. As a result of disruptions to work and travel schedules of international contractors and current limitations on access to the proposed physical site in Gresik, Indonesia associated with COVID-19 mitigation measures, PT-FI has notified the Indonesian government of delays in achieving the Indonesian Smelter completion timeline of December 2023. PT-FI is currently discussing with the Indonesian government a deferred schedule for the project as well as other alternatives. www.fcx.com

A limiting year for Glencore Glencore published its Annual Report for 2019 on 5 March. Own sourced copper production of 1,371,200 t was 82,500 t (6%) lower than in 2018. Approximately half of this (40,800 t) related to the African Copper assets, with Katanga’s rampup (+82,100 t) partially offsetting Mutanda scaling down and placement into temporary care and maintenance and Mopani’s extensive smelter refurbishment shutdown. Collahuasi’s attributable copper production of 248,800 t, and Antamina’s 151,400 t, were in line with 2018. Own-sourced Australian copper production of 194,600 t was 15,800 t (8%) lower than in 2018, mainly relating to weather-related disruptions in Q1. Custom metallurgical assets production

of 432,900 t was in line with 2018. Copper anode production of 510,700 t was 31,400 t (7%) higher than in 2018, mainly reflecting Altonorte’s plant turnaround in the base period. African own-sourced copper production of 369,900 t was 40,800 t (10%) lower than in 2018, reflecting Mutanda scaling down before entering temporary care and maintenance (from November) and Mopani’s comprehensive smelter refurbishment during H2, partially offset by Katanga’s continued ramp-up to 235,000 t (from 152,400 t). CEO Ivan Glasenberg said: “Clearly in the shorter term, we are closely watching coronavirus developments and potential

Las Bambas concerns for MMG Reported on 23 April, the first quarter copper production for MMG Limited of 91,911 tonnes was 24% below the prior period, largely due to social and operating disruptions at Las Gao Xiaoyu is CEO and Executive Director of MMG Limited Bambas. Production levels were impacted in January and February as a result of repairs to the overland ore conveyor, whilst blockades along Peru’s southern road corridor temporarily restricted both inbound and outbound logistics between 27 January and 8 February. Then a nationwide State of

Emergency was first declared on 15 March in response to the COVID-19 outbreak. As a result of the State of Emergency and other health restrictions, the transport of concentrates has been suspended. The Las Bambas mine stockpile was approximately 45,000 tonnes at 31 March. Kinsevere (DRC) copper cathode production of 18,207 tonnes was in line with plan for the first quarter and 45% above the comparative period in 2019, reflecting a shift back to mining at the Central pit. The report, ratified by CEO Gao Xiaoyu, says: “MMG continues to proactively respond to the COVID-19 outbreak, and to date no COVID-19 cases have been identified at any MMG operation.”

scenario impacts on global growth and markets and what adjustments, if any, are appropriate in our business planning.” www.glencore.com

Good 2019 output for KGHM

copper. Mr. German Larrea, Chairman of the Board, said: “Our growth program in Mexico and Peru aims to achieve 1.5 million tons of copper by 2028.” Southern Copper has a portfolio of US$ 2.8 bn approved projects in Peru and has already invested US$ 1.6 bn. The pipeline of Michiquillay (US$ 2.5 bn) and Los Chancas (US$ 2.8 bn) projects would bring its total investment in Peru to US$ 8.1 billion.

The KGHM Management Board, led by its President Marcin Chludziński, published its Annual Report for 2019 on 17 March. Production of payable copper by the KGHM Group (reflecting the 55% interest in Sierra Gorda) amounted to 702 kt, an 11% y-o-y increase due to KGHM Polska Miedź S.A. having higher availability of production lines, including that of the concentrate roasting installation, and to Sierra Gorda S.C.M. as a result of higher extraction and processing of higher coppergrade ore. Geological conditions (lower copper content in ore mined in the Sudbury Basin and in the Franke mine) were the main reasons for a decrease in production by KGHM INTERNATIONAL LTD. The metallurgical plants located in Głogów comprise two copper concentrate smelting lines based on the one-stage smelting of concentrate in a flash furnace directly into blister copper. Apart from electrolytic copper (448.1 kt in 2019), the Głogów Copper Smelter and Refinery produces crude lead, silver, gold and sulphuric acid (over 500 kt in 2019). The copper smelter and refinery located in Legnica, based on shaft furnace technology, produced 117.5 kt of electrolytic copper and 100 kt of sulphuric acid in 2019.

www.southerncoppercorp.com

www.kghm.com

www.mmg.com

Milestone for Southern Copper output Southern Copper Corporation’s fourth quarter and 2019 results were released on 25 February. The annual total production was up 12.5% y-o-y to a milestone 1,019,868 tons. This was principally due to higher copper production at Toquepala mine (258 kt) from the successful ramping up of the new concentrator, and Buenavista mine (+5.8%) as result of operating improvements at its SX-EW plants (+12.2%). The overall smelter output was 595,173 tons

The Altonorte Smelter acid plant can produce in excess of 1.1 Mtpy

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Katanga first quarter performance Reporting for the first quarter on 22 April, Katanga Mining Limited saw its copper cathode production by KCC Luilu metallurgical plant increase to 67,298 tonnes in Q1 2020 from 65,402 t in Q4 2019. The y-o-y increase in Q1 2020 copper cathode and cobalt contained in hydroxide production was driven by higher feed grades to Luilu metallurgical plant. The Kamoto Concentrator produced 56,709 t of concentrate in the quarter. Progress was also made on the EW refurbishment program and current efficiency improvements. A fully detailed operational excellence (OE) program defines the scope for margin improvements in the order of US$ 200-250 million per annum. A dedicated

Kamoto Concentrator flotation cells. Photo: KML

operations team is working towards delivery of detailed implementation plans for each of the initiatives and the full benefits are expected to be progressively realisable by 2022. www.katangamining.com

Ivanhoe news update on Kamoa-Kakula At the flagship Kamoa-Kakula Copper Project, management and corporate optimisation targets company-wide cash savings of up to US$ 75 million to strengthen its treasury of approximately US$ 600 million. Ivanhoe Mines Co-Chairs Robert Friedland and Yufeng ‘Miles’ Sun announced on 27 April that underground development at the Kakula Copper Mine continues to advance ahead of schedule and that more than 13.5 km of underground development is now completed, which is 4.2 km ahead of plan.

CFO Marna Cloete was appointed President of Ivanhoe Mines in March 2020.

A third consecutive monthly underground development record of 1.7 km was achieved. Copper ore grading 8% is being mined and stockpiled. Mr. Friedland commented: “The company is fully focused on bringing the Kakula Copper Mine to production on schedule and on budget. This positions us to deliver a world-class copper mine fortuitously timed for the highly probable recovery of the world economy by the third quarter of 2021.” www.ivanhoemines.com

Rio Tinto moderates outlook amid uncertainty

Releasing first quarter results on 17 April, (the Executive Board is headed by CEO, Eduardo Bartolomeo), Vale S.A. stated “Vale is committed to supporting its people, communities and stakeholders, and to maintain a healthy ecosystem for its value chain.” Copper production rose 0.7% y-o-y to 94.5 kt in 1Q20, mainly due to higher volumes from Sossego after the unscheduled maintenance shutdown for the conveyor belt and the sag mill in 4Q19 that was partially offset by unscheduled maintenance at the Salobo processing plant. Production of copper in concentrate at Sossego totalled 22.4 kt in 1Q20 and Salobo reached 42.2 kt, whilst Sudbury (Copper Cliff) copper output was 23.1 kt in the quarter. Vale revised its copper 2020 production guidance to 360-380 kt from 400 kt. The new copper production guidance considers actual and potential losses, including Voisey’s Bay mine shut down since March, which may be extended until July, as well as limited ability to keep current maintenance shutdown schedules. www.vale.com

Vedanta wrestles with copper prospects

US is working to resume normal operations following a 5.7 magnitude earthquake on 18 March. The mine, concentrator, tailings storage facility and refinery have all resumed safe and stable operations, but there was some damage to the furnace. Capital expenditure is now expected to be US$ 5 to 6 bn in 2020 (down from US$ 7 billion) partly due to Covid-19 constraints. Mined copper guidance is now 475 to 520 kt and refined copper is reduced to a 165 to 205 kt guidance. Work on the Oyu Tolgoi underground project continues. As at 17 April, the project remained on track for first sustainable production between May 2022 and June 2023. This range includes a contingency of up to 8 months.

The Vedanta Resources Limited (formerly Vedanta Resources Plc) Interim results for the six months ended 30 September 2019 were published on 24 December. In India, due legal process is being followed to achieve a sustainable restart of copper operations at the 400 ktpy Tuticorin Smelter project, which is currently under force majeure (pre-dates COVID-19). The Silvassa site successfully commissioned a new copper rod plant with no injuries in the period, and installed a boiler soot extraction system. In Zambia the KCM business is being treated as discontinued operations with effect from 21 May 2019. ZCCM Investments Holdings Plc (ZCCM), a company majority owned by the Government of Zambia, which owns 20.6% of the shares in Konkola Copper Mines Plc (KCM), filed a petition in the High Court of Zambia on 21 May 2019 to wind up KCM (Petition) on ‘just and equitable’ grounds. ZCCM also obtained an ex parte order from the High Court of Zambia appointing a Provisional Liquidator (PL) of KCM pending the hearing of the Petition. Since all the significant decision-making powers, including carrying on the business of KCM and taking control over all the assets of KCM, rests with the PL, Vedanta believes that the appointment of a PL has caused loss of its control over KCM as per IFRS 10.

www.riotinto.com

www.vedantalimited.com

The Oyu Tolgoi copper concentrator in Mongolia. Photo: Rio Tinto

Upon the 17 April release of Rio Tinto first quarter production results, Rio Tinto Chief Executive Jean-Sébastien Dominique Francois (J-S) Jacques said: “Our resilience and value over volume strategy mean we can continue to invest in our business, and support our communities and host governments.” At the Rio Tinto Plc AGM on 8 April, J-S Jacques confirmed a US$ 25 M investment in Covid-19 related community projects, out of a total of almost US$ 60 million. Overall the company will spend around US$ 197 M on voluntary and mandatory community contributions in 2020. Mined copper production of 133 kt was 8% lower than the same period in 2019, reflecting anticipated lower copper grades, partially offset by higher throughput. Kennecott in the

Vale cites maintenance limitations

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