Copper Worldwide Vol 8 No 2 issue

APRIL/MAY 2018

VOLUME 8 | 2

See Directory pp25-27

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n Key Words: ICA takes good look at markets n News: Deficit looms Tuticorin saga Conductor tech KGHM funding n Smelting: Miami Smelter longstanding Tuyere line improvement n Spotlight: 31st MB ICC in Madrid on scrap n Electrowinning: Electrode design treatise n Handling: New Irish factory n Managerial time: BHP ups output Codelco spends n Events: IWCC Seminar Wire / Tube 2018 Asia Copper Week GIFA / EMC 2019 Copperbelt in 2018 n Contracts: Labour agreed HCL value chain Strip furnace PT-FI situation n Supplier Directory In search of added value ISSN 2046-9438

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CONTENTS | 1

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Key Words

3

ICA Research delivered at WCC

News

4

ICSG sees refined copper deficit in 2019; Vedanta seeks resolution on Tuticorin;

Harry M. (Red) Conger honoured; Conductor technologies reviewed; Continuing demand in water sector; KGHM aided by EIB; Cobre Panama update; Grupo Mexico latest; Cobalt rush in DR Congo

Spotlight

9

31st MB International Copper conference discusses scrap in Madrid

Contracts & People

20

Antofagasta labour secured; Anglo American sees increased

volumes; Hindustan Copper covers whole value chain; Rio Tinto latest; PT-FI situation; Otto Junker strip furnace; La Farga comes to wire

BHP approved US$ 2.46 billion of capex for the Spence Growth Option (SGO) at the Spence open-cut copper mine in the Atacama Desert in Chile in 2017. Photo: BHP (see Page 8)

Inside this issue MANAGERIAL REVIEW

8

Codelco remains determined; BHP tops producers; FCX sound

in Americas; Glencore’s African bonus

PRIMARY SMELTING

10,11 Antofagasta points the way in labour negotiations (see Page 20)

UAE Country Profile

16

Jon Barnes on how the UAE is faring

Supplier Directory

25-27

Looking to add business value?

Miami Smelter’s longevity - Phillip Mackey;

Converter tuyere line improvement

ELECTROWINNING

12-13

METALEX Corner 2 - Electrode design for electrowinning

IWCC TECHNICAL SEMINAR REPORT

14-15

Hot and Cold Deformation processes;

Peru Progress

IWCC 2018 forecast

28

WIRE/TUBE REVIEW

A new business-friendly President; Minerals railway plans; Southern

Copper projects; Quellaveco interest; METALEX Corner 2 - EXMAJET results

17-19

Organiser’s figures; New products; Stand photos;

Exhibitor reviews

Copper Worldwide Vol 8 No 2

SAFETY AND MAINTENANCE

22

Operating busbars for electrowinning

EVENT PREVIEWS

23

Asia Copper Week an essential date; GIFA and EMC back in 2019;

Copperbelt shows

MATERIALS HANDLING

24-25

Major new Combilift facility in Ireland opens

Front Cover

The advertisement “How Aurubis turns your old toaster into a tablet” on the front cover illustrates in a humorous way how Aurubis contributes to protecting the environment. As an integrated copper producer, Aurubis is also a leader in copper recycling: copper and other metals are recovered from electronic scrap without a loss of quality and returned to the economic cycle. In this way, Aurubis not only contributes to the long-term supply of valuable resources but also to our daily life. Without copper there would be no electrical appliances, and without electrical appliances there would be no prosperity or progress. www.aurubis.com

2 | COPPER WORLDWIDE A-Z

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

Companies COMPANY NAME

Volume No: 8 Date:

Issue No: 02 April/May 2018

PAGE NO

COMPANY NAME

PAGE NO

COMPANY NAME

PAGE NO

ABB.................................................................. 3, 5

EMC 2019.......................................................... 23

Metalex............................................. 12, 13, 22, 28

ALTA 2018........................................................ 23

Emirates Copper............................................... 16

Miami Smelter (FCX)...................................... 10

ALUMINIUM 2018 ......................................... 23

Eurasian Resources Group................................. 4

MINO................................................................. 15

Publishing Consultant: John Clarke

AME Trade........................................................ 23

EXMA.......................................................... 13, 28

MMG.................................................................. 28

Anglo American...................................... 5, 20, 28

First Quantum Minerals.................................... 7

JX Nippon Mining & metals........................... 15

Circulation & Subscription Manager: subscriptions@copperworldwide.com

Antofagasta................................................ 1, 4, 20

Fraunhofer Institute..................................... 3, 14

Norilsk Nickel................................................... 20

Asarco Hayden Smelter...................................... 5

Freeport McMoRan (FCX).................... 8, 10, 21

Olin Brass.......................................................... 14

14th Asia Copper Conference (MB Events)... 23

Fujairah Copper and Gold............................... 16

IT/www Contact: webmaster@copperworldwide.com

Asia Copper Week 2018................................... 23

GDMB................................................................ 23

ASMAG.............................................................. 15

GIFA 2019.......................................................... 23

Atlantic Copper................................................... 9

Glencore............................................................... 8

Aurubis............................................................... 14

Grupo Mexico.................................................. 5, 7

Beijing Antaike Information Development..... 4, 5

HarbisonWalker International........................ 11

BHP ....................................................... 1, 5, 8, 11

Hindustan Copper........................................ 5, 20

Boliden................................................................. 9

Holton Crest................................................ 18, 19

BSRIA................................................................... 5

International Copper Association................. 3, 5

CESCO............................................................... 23

31st International Copper Conference

Publisher: Chris K Holding BSc BEng

Managing Director: Chris K Holding copper@atrium5.plus.com Published by Metallic Media Ltd 5 Dennis Road Wimborne, Dorset BH21 3NF United Kingdom Tel: +44(0)7731 784798 e-mail: office@copperworldwide.com www.copperworldwide.com Distribution: free to managers involved in the various stages of the copper industry: Production of primary or secondary copper and associated refining; recycling, melting and casting operations; processing of copper by extrusion, rolling and tube/wire drawing for the manufacture of semi-finished products or fabrications; or involved in the manufacture of components and structures from copper alloys; and who are involved in the buying process for equipment and materials.

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Magazine Production Toni Barrington, The Magazine Production Company Shoreham-by-Sea, West Sussex, BN43 5EG, UK Tel: +44 (0)1273 467579 info@magazineproduction.com

Chalco Yunnan Copper...................................... 5

(MB Events)..................................................... 9

Chifeng Jinjian Copper.................................... 20

International Copper Study Group................... 4

Codelco................................................................. 8

International Wrought Copper Council

Otto Junker........................................................ 21 P. J. Mackey....................................................... 10 PT-FI (FCX)............................................... 20, 21 PWM............................................................ 17, 18 Quellaveco.......................................................... 28 Rautomead................................................... 18, 19 Rio Tinto............................................................ 21 Sikora........................................................... 17, 18 SMS group......................................................... 15 Southern Copper Corporation................... 20, 28 Southwire Company................................... 16, 18 Tongling Nonferrous Metals Group................. 4

Combilift.................................................. 4, 24, 25

(IWCC)..................................................... 14, 15

Union Copper Rod............................................ 16

Continuus-Properzi........................ 15, 16, 18, 19

J. Barnes......................................................... 9, 16

Upcast Oy........................................................... 16

CONTIROD...................................................... 16

Jiangxi Copper Corporation.............................. 4

Vedanta Resources.................................... 4, 5, 16

Copper Club (Ankh Award).............................. 4

KGHM............................................................ 7, 20

Verder Group..................................................... 20

Copper Development Association................... 14

La Farga............................................................. 21

Wire/Tube 2018............................................... 17,

CRU Events..................................................... 3, 5

Las Bambas........................................................ 28

17th World Copper Conference

Danieli.......................................................... 15, 19

Mansfelder Kupfer und Messing (MKM)...... 21

(CRU Events).............................................. 3, 5

Ducab................................................................. 16

Metal Bulletin Events......................................... 9

ZIMEC 2018 (AME Trade).............................. 23

Advertisers COMPANY NAME

PAGE NO

COMPANY NAME

PAGE NO

COMPANY NAME

PAGE NO

Alex Stewart International............................... 27

hpl-Neugnadenfelder........................................ 26

Primetals Technologies.................................... 27

China Nonferrous Metals Processing............... 6

Kopar.................................................................. 25

RHI Magnesita...................................... 10, 11, 26

Combilift...................................................... 18, 26

Kumera Corporation............................ 25, 26, 27

Saint Gobain...................................................... 27

Continuus Properzi.................................. Cover 2

Küttner GmbH........................................ 9, 26, 27

Schenck Process.......................................... 26, 27

Danieli Froehling....................................... 26, 27

Metalex..........................................25, 27, Cover 3

SMS group (PolyMet)................................. 25, 26

EMA Indutec..................................................... 26

Mettop.................................................... 25, 26, 27

TSK..................................................................... 25

HarbisonWalker International.................. 22, 26

MINO.................................................. 27, Cover 4

UrbanGold................................................... 25, 26

Holton Crest...................................................... 25

PolyMet Solutions........................Cover 1, 25, 26

Weir Minerals.................................................... 26

There is much optimism about 2018 – Discover the ISSUES affecting copper now!

The next Vol 8 No 3 issue of Copper Worldwide is published in August 2018. Scheduled features include Hydrometallurgy/Run of Mine Operations, Copper Semis, Extrusion Process Technology, Recycling and Scrap Processing, Instrumentation and Monitoring, 2018 Primary Wallmap (scheduled), Profiles and Reviews, and more. Supporting website www.copperworldwide.com features issue summaries and event updates. Thank you to all advertisers once again. All correspondence welcome.

Copper Worldwide Vol 8 No 2

KEY WORDS | 3

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ICA works to add value The 17th CRU Events World Copper Conference took place in Santiago, Chile from 9-11 April. One of the highlights was an ICA Workshop on Copper Demand and Substitution on 9 April. There was also an ICA Panel on key issues related to future copper demand on 11 April.

Lisa Jerram is Principal Research Analyst Energy at Navigant Research

Dr. Luis Tercero is Head of Business Unit Systemic Risks at Fraunhofer Institute

The International Copper Association (ICA) presented the latest information on global substitution, high-tech conductors, opportunities for copper in water and the global flow of brasses. The Moderator was Colin Bennett, Global Manager, Market Analysis and Outreach, International Copper Association Ltd for both events. A summary of each presented topic follows:

future of lead content in brass on a global scale.

Dynamic stock-and-flow models for copper are available at the global and regional level, however, in the past, these have not tracked alloying metals such as zinc, tin or lead. With questions now being raised about lead - making it a target for more restrictive regulations, which have potentially significant implications for industry - incorporating these alloying metals into stock-and-flow models is an important step.

The model tracks brass through time, and is based on the best available data, both public and proprietary. This ensures a much-improved understanding of how brass is used and reused by society, and thus increases the transparency of lead flows at the global level. The study examines the life cycle of brass in exceptional depth, from primary material production, through the production of semi-finished goods, to the fabrication of end-use products. At the close of the life cycle of end-use products, the brass becomes part of the ‘urban mine,’ and is either recycled or becomes waste, ending up in landfill, incineration, or other recycling loops.

The detailed accounting of brass flows at each stage of the life cycle is what makes this model especially valuable, allowing for a better understanding of where and in what quantities lead enters and exits the cycle. The new model enables the plotting of different scenarios for leaded brass, which - until now - have been missing. For example, using the research, forecasts could be made of the impact of a reduction in primary lead input into copper alloys, or of an increase in end of life scrap being smelted rather than re-melted, or a combination of both.

Exploring theoretical dilution scenarios is an essential step towards evaluating the practical impacts of lead reduction on manufacturing processes and end-use applications.

Dr. Luis Tercero Espinoza, who led the research team at Fraunhofer ISI and supervises the institute’s research topic Materials and Raw Materials, says: “Whether impactful dilution is possible without changing recycling routes, or whether there needs to be a systematic reduction in the amount of directly re-melted leaded end of life alloy scrap in semis production, the model is a major step in understanding the multiple scenarios possible.”

Opportunities in the Electromobility Charging Infrastructure Market - Lisa Jerram, Principal Research Analyst Energy, Navigant Research and Bjørn Utgård, Director of New Markets, EVBox According to research commissioned by the ICA, growing numbers of plug-in electric vehicles (PEV) will drive demand for over 40 million charging ports by 2027. A crucial material in the construction and development of electric vehicle charging equipment, it is predicted that over 100,000 tonnes of copper will be needed to satisfy the demand just in port charging cables, charging units and wiring to electrical panels.

Though currently just 1-2% of global car sales, the research, undertaken by consulting firm Navigant Research, predicts the global PEV population will rise to 58 million by 2027. With a greater number of cars comes a greater need for charging infrastructure, and copper’s intrinsic values give it a dominant role in the market. As Colin Bennett observed, “The importance of copper in electric vehicles is widely acknowledged. Less recognised, however, is that charging infrastructure also relies heavily on copper.”

From a range of potential uses, the research identifies three component parts of EV charging equipment in which copper is used: the charging unit, charging cable and wiring to an electrical panel. With a standard length of 25 feet, the main source of copper in the equipment today is the charging cable, which includes four wires, three for power and one for communications. DC fast chargers have additional copper wiring in the unit and in the cable.

It is argued that the largest source of new copper demand will come from somewhere else: wiring to the electric panel. As Principal Research Analyst and research author, Lisa Jerram, says: “As range increases and PEVs become increasingly ubiquitous, rather than sit in a forecourt mid-journey, people will recharge during work, or when at home. This will prompt a major infrastructural change in public parking areas, with charging locations requiring hundreds of feet of copper wire to make them EV ready.”

Brasses/Lead Stocks & Flows Model - Dr. Luis Tercero, Head of Business Unit Systemic Risks, Fraunhofer Institute The ICA announced new research from Fraunhofer ISI that models the global flow of leaded brass through time with unprecedented detail.

Crucially, the model enables calculation of quantitative scenarios for the

Please see NEWS section for reports on the following two topics: Competing High-Technology Conductors - Richard Collins, Technology Analyst, IDTechEx and Dr. Dmitri Tsentalovich, COO, DexMat Opportunities for Copper in the Global Water Market - Krystyna Dawson, Business Manager, BSRIA WMI and Israel Merin, Utilities Segment Manager, ABB www.copperalliance.org

Copper Worldwide Vol 8 No 2

4 | NEWS In brief…

Combilift, Ireland’s forklift manufacturer and material handling solutions provider, is to expand its workforce with 200 jobs. The announcement was made by An Taoiseach Leo Varadkar TD at the opening of Combilift’s new EUR 50 million global headquarters and manufacturing facility in Monaghan.

See full story on Page 24. www.combilift.com

A February 2018 survey by Law firm White & Case has found that 80 per cent of mining industry leaders believe ‘opportunistic asset-driven deals’ would be the most common type of mergers and acquisitions activity in the sector in 2018. More than 50 per cent of respondents to the survey said they expect mining companies to ramp-up production. www.whitecase.com

Los Pelambres scheduled preventative maintenance on 16 April revealed a blockage in the pipeline that transports its concentrates to the port at Los Vilos. Filtering of concentrates at the port resumed on 5 May, with around 3 months needed to clear stockpiles at the plant and the port. Production guidance for the full year remains unchanged at 705-740,000 tonnes. www.antofagasta.co.uk

Mr. Benedikt Sobotka CEO of Eurasian Resources Group, said in April that mining companies need to commit to new greenfield projects to avoid looming copper supply shortages.

The concentrates market balance is set to tighten markedly, with the 2018 benchmark TC/RC (treatment and refining charges) trending at multi-year lows.

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

ICSG gives market forecast for 2018/19 The International Copper Study Group (ICSG) met in Lisbon, Portugal on 26-27 April 2018. In the meeting of the Statistical Committee, the ICSG view of the world balance of refined copper production and use was developed.

After a decline of 1.5% in 2017, world mine production, after adjusting for historical disruption factors, is expected to grow by around 3% in 2018 and remain essentially unchanged in 2019. World mine production decreased by 1.5% in 2017 due to significant supply disruptions and a lack of significant output from new projects or expansions, but is expected to grow by 3% this year.

Part of the growth expected in 2018 is due to the recovery from constrained output last year, mainly in Chile and Indonesia. However, 2018 production will also benefit from the re-starting of temporarily closed capacity in the DRC and Zambia, and to a lesser extent additional output from a few new projects/expansions coming on stream.

Growth in concentrate and SX-EW will be similar as concentrate will benefit from the recovery in production at a number of mines including Escondida and Grasberg, and SX-EW will increase due to the re-start of the Kamoto mine in the DRC, more than offsetting SX-EW declines elsewhere, mainly in Chile.

World ref ined production is expected to increase by around 4% in 2018 with lower growth of about 1% expected for 2019. In 2017, a series of planned and unplanned shutdowns at major smelters and lower output

at SX-EW plants significantly reduced primary refined production in major producing countries such as Chile, Japan and the United States, leading to world growth of only 0.7% (even though increased availability of scrap allowed world secondary refined production to grow by 5%).

In 2018, the expected recovery from 2017 constrained electrolytic refined production combined with the restart of temporarily closed/reduced SX-EW capacity and adequate availability of concentrates should support a 5.5% growth in primary refined production. This will more than offset an anticipated 2% decline in secondary refined production (from scrap).

China will remain the biggest contributor to world ref ined production growth in 2018 and 2019, followed by the DRC. After a decline of 2% in 2017, world ex-China refined production is expected to recover significantly in 2018. In 2019, world refined production growth is expected to be lower as growth in electrolytic refined production is likely to be constrained by tightness in the availability of concentrates.

World apparent refined usage is expected to increase by 3% in 2018 and 2.2% in 2019. Sustained growth in copper demand is expected to continue. Infrastructure development in major countries such as China and India and the global trend towards cleaner energy will continue to support growth. The strength of the world economy has improved with prospects for sustained growth in both 2018 and 2019. Better prospects

for global and Chinese economies as compared to October 2017’s forecast led to a small upward revision of 2018 and 2019 world refined usage growth.

China will remain the biggest contributor to world growth in copper usage. Apparent demand in China is expected to increase by around 3.5% in 2018 and 2.5% in 2019, essentially in line with underlying ‘real’ demand growth estimated by other analysts.

The outlook for the EU, Japan and the United States remains positive.

After a small growth of 0.5% in 2017, world ex-China usage is expected to grow by around 2.5% in 2018 and 1.9% in 2019.

World refined copper balance projections indicate a small surplus of about 40,000 t for 2018 and a deficit of around 330,000 t for 2019. The ICSG recognises that global market balances can vary from those projected owing to numerous factors that could alter projections for both production and usage. In developing its global market balance, ICSG also uses an apparent demand calculation for China that does not take into account changes in unreported stocks.

Current ICSG projections are for a small surplus of about 40,000 tonnes in 2018, compared to a deficit of about 100,000 t forecast at the October 2017 meeting. The switch to surplus is due to stronger than previously anticipated growth in refined copper production.

For 2019, ICSG expects the market to present a deficit of about 330,000 t, in line with its October 2017 forecast, with usage growth stronger than that of production. www.icsg.org

www.eurasianresources.lu

Tuticorin expansion by Vedanta facing headwinds

Jiangxi Copper Co., Ltd. (JCCL) operating revenue increased by 1.35% in 2017 against 2016. Its net profit reached 1.604 billion yuan.

In 2017, JCCL produced 1.37 million tonnes copper cathode, up by 160 kt compared with 2016. JCCL produced 209.6 kt copper-in-concentrate, level with the previous year.

Ve d a nt a re source s c atho d e production for Q4 FY2018 (year e nde d 31 M a rch 2018) wa s 106,000 tonnes, higher by 3% y-o-y. Smelting operations at Tuticorin were stopped as part of a planned maintenance shutdown for approximately 15 days with effect from 25 March 2018. However, an application for renewal of consent to operate (CTO) for the smelter was made during this time was rejected for want of

www.antaike.com

Tongling Nonferrous Metals Group Co., Ltd revenue fell by 4.9% in 2017 against 2016. Its net profit reached 548.8 million yuan. In 2017, it produced 46.7 kt of copper concentrate (metal content), 1.28 Mt copper cathode, 334.5 kt copper semis, 3.78 Mt sulfuric acid, 9,605 kg gold, 385.90 t silver, 432.7 kt iron ore concentrates and 392.4 kt sulphur concentrates. www.antaike.com

fur ther clarifications, so the shutdown was extended. Protesting locals and environmentalists say the smelter is a major source of pollution and a risk to fisheries - the smelter was shut for more than two months in 2013 by an Indian environmental court.

The company says the expansion plan to double Vedanta’s Tuticorin smelter capacity from 400 kt to 800 ktpy is firmly underway, overseen

by Vedanta Resources Plc CEO

Kuldip Kaura. The EPC contracts for all main plant packages, power distribution and automation packages have been awarded. The project has an execution timeline of 24 months and is expected to be completed by Q3 FY2020 for Vedanta. India’s local demand growth of 7-8 per cent per year may turn it into a net importer of copper by the year ended March 2020 if no new plant is commissioned. www.vedantaresources.com

Conger to receive Ankh Award Harry M. (Red) Conger, President and Chief Operating OfficerAmericas, Freeport-McMoRan Inc. was named the 2018 recipient of the prestigious Ankh Award for Copper Man of the Year. The

award will be presented at The Copper Club Annual Dinner on 6 June 2018 at the Pierre Hotel in New York City. Mr. Conger will be honoured in recognition of his outstanding service to the copper

Copper Worldwide Vol 8 No 2

mining industry, for his leadership in promoting improvements in workforce safety and building strong collaborative relationships with the local communities. www.copperclub.org

NEWS | 5

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ICA says competing conductors not yet viable During the ICA Workshop on Copper Demand and Substitution a t t h e 17t h Wo r l d C o p p e r Conference in April, a presentation was made by Dr. Richard Collins, Technology Analyst, IDTechEx and Dr. Dmitri Tsentalovich, COO, DexMat, entitled Competing HighTechnology Conductors. The ICA announced that despite significant progress, emerging conductive materials are still a long way from being competitive with copper.

The IDTechEx research focuses on pure nanocarbon materials, copper nanocomposites and high temperature super conductors, and suggests that these materials, though still in relative infancy, do not have the requisite properties or costs to threaten the current market. Improved conductors would theoretically have lower resistance, high current carrying capacity, lighter weight, smaller size and a reduced temperature dependence. However, according to Dr. Collins, author of the research, none of the researched materials tick all the boxes: Pure nanocarbon materials - Since their inception in the early 1990s, carbon nanotubes (CNTs) have been identified as a potential replacement for copper.

In their nanoscale form, their high ampacity, thermal conductivity, flexural strength, lower density a nd te mper ature coeff icie nt of resistance give them some significant advantages over copper.

However, successfully translating

CHALCO Yunnan Copper Co., Ltd annual financial results for 2017 indicate that the operating revenue of the company decreased by 3.16% in 2017 y-o-y, and net profit reached 227 M yuan.

Yunnan Copper produced 55.2 kt mine copper (metal content), 626.1 kt copper cathode, 10,028 kg gold and 450.87 silver in 2017. www.antaike.com

Key Issues Panel discussion at the recent ICA Workshop on Copper Demand and Substitution

these benefits to the macroscale is proving very challenging. The progression to macroscale CNT wires, yarns and tapes has seen significant improvements over the past 10 years, and this is expected to continue, but the hardest steps are still to come and we will not see CNT yarn used in any mainstream applications for at least another 10-15 years.

Copper nanocomposites - Sometimes called nanoalloys or ultraconductive copper, copper nanocomposites refer to the inclusion of conductive material such as CNTs or graphene - into a copper matrix. Due to their exceedingly low levels of electrical resistance, which has been measured as high as 118% IACS, copper nanocomposites could see use in a range of electrical applications, including magnet wires in motor stators, copper foil in batteries, circuit boards, bonding wire for lead frame to chip, chip-level connection, power transmission cable, and power cable. Common challenges in high volume manufacturing of

usable wire with uniform properties, cost-effectiveness, and availability of nanocarbon materials from the upstream supply chain is holding these materials back. Most of the research is carried out at university level.

High temperature superconductors - High temperature superconductors (HTS) are the most mature and extensively tested of these e m e rging condu c tor s. Th ey provide zero resistance solutions when cryogenically cooled to below their critical temperature.

With cable that transmits three to five times the power of copper cable helping minimise land use in urban areas, zero resistance cable minimising power loss, and power that transmits at higher current and lower voltage, HTS have already been trialled in a number of projects. According to the research, processing costs are the greatest challenge for HTS. To warrant large-scale adoption, cost needs to reach US$ 20 - 30 range per kiloamp metre. www.copperalliance.org

- has brought water and waste water management processes and efficiency into focus. With copper a critical material in water management technology, demand in this sector is set to grow significantly. Copper is a key enabler in the transition to a more efficient water and waste water treatment process.

Copper already exists in large quantities throughout the water utility segment. Around 78% of it resides in pump motors while electrical wiring, heat exchangers, combined heat and power (CHP) units and other ancillary electrical equipment make up the remaining share. As the spotlight falls on improving efficiency measures and replacing ageing infrastructure, the current demand of 39,000 tonnes is set to grow at an astonishing rate, driven largely by a need for

Addressing the Anglo American plc Annual General Meeting for shareholders in London on 8 May, Chairman Stuart Chambers said of the company: “Anglo American is an iconic brand in mining and being appointed Chairman is not just a pleasure, it is a privilege. As a global diversified miner, with that ubiquity and reach comes responsibility. www.angloamerican.com

Hindustan Copper said in August 2017 that the site for a plant of capacity 100 ktpy to manufacture copper cathode through cost effective hydrometallurgy technology has also been finalised and investment in this project is a projected US$ 448.3 million (Rs 3025 crore). The investment proposal had been sent to the Ministry to obtain CCEA approval. www.hindustancopper.com

Vedanta Resources plc (Vedanta) has announced the appointment of Srinivasan Venkatakrishnan (Venkat) as Chief Executive Officer (CEO) and a member of the Board of Directors, effective 31 August 2018. He will succeed Kuldip Kaura, the current Interim CEO. Since 2013, Venkat has been CEO of AngloGold Ashanti Limited. www.vedantaresources.com

Water scarcity to drive future demand for copper An ICA-backed presentation entitled ‘Opportunities for Copper in the Global Water Market’ was m ade by K r ys t yn a D awson, Business Manager, BSRIA WMI and Israel Merin, Utilities Segment Manager, ABB at the17th World Copper Conference organised by CRU Events in Santiago in April. The new research, commissioned by the ICA, found that copper demand will likely be a major beneficiary of the growing global water crisis. The research, undertaken by strategic market intelligence company BSRIA WMI, found copper use in water and waste water utilities could grow to 260,000 tonnes per year by 2027.

BSRIA WMI Director Krystyna Dawson argued that the increasing pressure on our global water supply - caused by a growing population and industrialisation of the world’s developing economies

In brief…

more efficient motors and heat exchangers in cogeneration and ancillary applications. According to the preliminary research results, 200,000 tonnes of copper will be needed to satisfy the demand for motors in 2027.

Unsurprisingly, urbanisation and industrialisation in China will be the largest catalyst for growth. Due to overtake the US as the biggest market in 2019, China is expected to see a 35% increase in copper demand between 2017 and 2027.

Other emerging markets include the Arabian Peninsula, which has the largest desalination capacity in the world, and Kazakhstan, due to its significant amount of aged infrastructure and plans to progress with desalination. Copper demand is expected to grow in these regions by 25% and 17% respectively. www.copperalliance.org

Copper Worldwide Vol 8 No 2

The Escondida Water Supply Extension (EWSE) was sanctioned by all JV partners in March 2018 and comprises the expansion of the Escondida Water Supply conveyance system and desalination plant for sustainable reduction of groundwater usage and maximisation of concentrator throughput. EWSE will deliver first its water in the BHP 2020 financial year. www.bhp.com

The Asarco Hayden smelter modernisation in Arizona involving a US$ 229 million spend to comply 100% with new environmental regulations was completed in April 2018. The smelter will have state of the art technology in converter furnaces and gases and dust collection.

The greater efficiency could allow output of an additional 15,000 tonnes of copper annually. www.gmexico.com

NEWS | 7

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EIB supports Polish copper industry A more efficient copper industry in Poland and Europe, with state of the art technologies and reduced environmental impact, is the aim of a modernisation plan undertaken by KGHM Polska Miedz (KGHM), the world’s sixth largest copper producer, which the European Investment Bank (EIB) is spearheading with a EUR 212 million loan announced in December 2017. The EIB loan will help KGHM to replace end-oflife equipment and machinery and to implement actions to address the challenges of a changing macroeconomic environment (reduction in commodities prices), varying mining and extraction conditions (deeper lying deposits) and tightening environmental legislation (reduction of noxious emissions). KGHM’s copper ore deposits are also important as key raw material for Europe. Thanks to upgraded technologies, the company will be able to increase its productivity, competitiveness and further grow its business both in Poland and worldwide.

The loan granted to KGHM Polska Miedz is in line with the European Union’s renewed Industrial Policy Strategy and its aim to secure a sustainable and affordable supply of raw materials, like copper, which is widely used in a high number of

Grupo Mexico is another heavyweight investor

According to results released in February, Grupo Mexico’s accrued revenues for 2017 reached US$ 9.78 billion (+20% vs. 2016). Copper stood for 65% of Grupo Mexico’s total revenues in 2017. In the Mining Division, the firm stayed in first place with the lowest cash-cost in the Industry, at US$ 1.11 per lb of copper. Capital investments settled at US$ 3.58 billion in 2017, of which US$ 1.17 bn was invested in the Mining Division, and US$ 2.38 bn in the Transportation Division, In the Precious Metals Plant of the Głogów copper smelter/refinery, the following metals are produced: 99.99% including the acquisition of 100% pure silver (shown) in the form of bars and granules, bars of gold with more than 99.95% Au content, and platinumof the shares of Florida East Coast palladium concentrate.

Railway, and US$ 27 million in the key industries. The EIB funds will from use. We want to improve Infrastructure Division. be used to finance the development productivity, work safety and ensure and the replacement of equipment, the protection of the environment.” 2018 Capex t h e d e p l o y m e n t o f n e w The EIB has agreed to finance up The budget for capital investments infrastructure at various stages to 50% of the total project cost, in 2018 is US$ 2.58 billion, which of the production chain, starting estimated at EUR 448.7 million. The will serve to complete the expansion from ore mining and processing, project will be implemented over the of the Toquepala mine, increasing through the smelting process, to period 2017-2021 and will cover the annual copper production by copper electrorefining. Radosław main mining and production sites of 100,000 tonnes to 245,000 t - a Domagalski-Łabędzki, President of KGHM in Poland, with a positive 69% increase. The company will the Management Board of KGHM impact on the environment and begin the Buenavista Zinc project, Polska Miedź S.A. said “Replacement employment in the region. As the which will enable it to double zinc projects are aimed at modernising largest employer in the lower Silesia production capacity from 80,000 t to the production process, including region, KGHM has a high economic a total of 160,000 t, and the Pilares replacing machines in the machinery and social relevance. mine project, with high ore grades, park as well as equipment withdrawn www.kghm.com which will increase production at La Caridad mine.

Buenavista Zinc, within the First Quantum sets out Cobre Panama expansion Buenavista deposit in Sonora, The First Quantum Minerals Ltd accommodate the future expansion. between 270,000 and 300,000 t comprises the construction of a (First Quantum) Board of Directors Expansion to 100 mpty is expected in 2020, and up to 350,000 t in concentrator with a production 2021. At steady state, the unit cost capacity of 80,000 t of zinc and 20,000 approved the expansion of Cobre to be undertaken after 2022.

Panama’s throughput capacity by Additional initiatives to enable a of production is estimated at US$ additional tonnes of copper annually.

15% to 85 million tonnes per year smooth and efficient commissioning 1.20 per pound C1 and US$ 1.50 To date, the basic engineering has per pound all-in sustaining, net of a been completed, and the purchase (mtpy), and upgrades to certain and ramp-up: areas to accommodate a further F o l l o w i n g t h e s u c c e s s f u l by-product credit of US$ 0.25 per of the main equipment has begun. increase to 100 mtpy after 2022 in commissioning and ramp-up of the pound. Kansanshi smelter achieved The budget for this investment is February. The Board also approved Kansanshi smelter, First Quantum commercial operations well ahead US$ 413 million, and it should be operational by 2020. additional initiatives aimed at plans to embed various highly- of all prior projections. achieving a smooth and efficient skilled technical personnel from its www.first-quantum.com commissioning and ramp-up phase. partner equipment manufacturers New mine Cobre Panama’s total development and suppliers, and a supplemental The Pilares, Sonora project is 6 km c apit a l is now e s tim ate d at experienced operational ramp-up Cobalt boom away from La Caridad and will be US$ 6.3 billion, with an improved team during the pre-commissioning In 2017, the Democratic Republic developed as an open pit mine with capital intensity of US$ 18,000 stage. Other initiatives include the of Congo produced two-thirds an annual production capacity of per tonne of annual copper procurement and increased market of the world’s cobalt. The effect 35,000 t of copper concentrates. produced, assuming an annual cost for higher quality and capacity of the cobalt rush is being felt in The high ore grade mineral will be production rate of 350,000 tonnes equipment, additional spares, areas like Kasulo, and Bel-Air in transported by the same mine cars upgrade and rectification of certain Kolwezi. China’s Zhejiang Huayou to feed the main crushers of the of copper in concentrate.

Installation of an eighth mill, power station equipment and an Cobalt Co is targeting 30,000 La Caridad copper concentrator, already owned by the company, and increase in the contingency cost to tonnes output this year as it expands thus improving the average ore associated infrastructure is planned completion. capacity. It decided in 2017 to grade (0.78% expected at Pilares to begin in the second half of 2018, The project is expected to start build a second cobalt refinery vs. 0.34% at La Caridad). To date, for completion in the second half phased commissioning during 2018, i n K o l w e z i , w h e r e i t a l s o the mine plan is being designed, and continue to ramp-up over 2019 and has mining assets. That plant will the new road layout has already been of 2019. Work includes an expansion of the reach the 85 mtpy throughput rate have annual capacity of 5,000 completed. The investment budget is mining fleet and process equipment, by 2020. Over this period, contained tonnes and is currently undergoing US$ 159 million, and it should begin additional pre-production stripping copper production is estimated at test production. operations in 2019. www.gmexico.com and supporting infrastructure to a minimum of 150,000 t in 2019, www.reuters.com Copper Worldwide Vol 8 No 2

8 | MANAGERIAL REVIEW

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

Codelco spends to keep up output Despite a significant drop in ore grade, Codelco produced 1.2 million tons to September 2017 and was on track to reach its annual production target for the year (see Table 1). Regards its projects in complying with emissions regulations: Ventanas - was completed in December 2016 for US$ 105 million. Black smoke emitting during the copper refining process is now filtered and converted into steam. The project, including cooling towers and sleeve filters, eliminated black smoke and reduced particulate matter by more than 90 percent.

Chuquicamata Smelter - at a projected cost of US$ 916 million, was 33% complete as at 23 November 2017. Acid plants 3 and 4 had detailed engineering 80% complete and plants under construction. The upgrade of the Flash Oven was still in the approval process.

Caletones Smelter – projected cost US$ 558 million and 29% completed. It reported continued progress in the slag treatment plant and reduction of emissions from the gas cleaning plant. Reduction of heavy smoke from the anode furnace was in the approval process.

Potrerillos - project cost was US$ 351 million and

Table 1. 2012 / 2017 Five-year copper output comparison of global diversifieds R2012 R2017 Company

Country

tcu (2012)

1

2

Corporacion Nacional (Codelco)

Chile

1,758,000 1,734,000

2

3

Freeport-McMoRan Copper&Gold

United States

1,417,500 1,730,000

3

1

BHP Billiton / BHP

Australia

1,245,800 1,742,500

4

5

Grupo Mexico

Mexico

862,900

1,010,630

5

6

Antofagasta PLC

UK

629,100

722,500

6

9

Rio Tinto Group

UK

549,000

560,000

7

8

KGHM Polska Miedz

Poland

535,500

615,000

8

7

Anglo American plc

UK

461,200

645,000

9

10

Norilsk Nickel Mining & Met.

Russia

406,900

410,000

-

4

Glencore

Switzerland

n/a

1,465,000

Note: Above are averaged estimates based on most recently published data and guidance. Sources: Various

it was 67% complete. Improvement in capture and processing of gases saw planning and work during the plant’s shutdown in October 2017.

Freeport looks to Lone Star guidance First-quarter 2018 copper sales announced on 24 April were 993 million pounds (Jan 2018 est.

1.0 bn lb) and came in higher than 1Q 2017 sales of 809 Mlb, primarily reflecting higher operating rates in Indonesia.

FCX operates seven open-pit copper mines in North America, including at Morenci (72% share), Bagdad, Safford, Sierrita and Miami in Arizona. FCX has commenced an initial project to develop the Lone Star oxide ores near Safford with first production expected by the end of 2020. Total estimated capital costs, including mine equipment and pre-production stripping, approximate US$ 850 million and will benefit from the utilisation of existing infrastructure.

At 31 March 2018, approximately US$ 35 M had been incurred for this project. Production from

the Lone Star oxide ores is expected to average around 200 Mlb Annually over an estimated 20-year mine life.

In South America, FCX operates two copper mines, Cerro Verde in Peru (53.56% share) and El Abra in Chile (51%). The Cerro Verde mine produces molybdenum concentrate and silver. The Cerro Verde expansion project, which commenced operations in September 2015, achieved capacity operating rates in early 2016. The project expanded the concentrator facilities’ capacity from 120,000 tonnes of ore per day to 360,000 t of ore per day. The project has continued to perform well, with average mill throughput rates of 385,500 tpd in 1Q 2018, including a daily record of 462,900 tonnes of ore. www.fcx.com

Glencore benefits from Katanga leaching The First Quarter 2018 Production Report released on 3 May has total own sourced copper production of 345.4 kt, around 21.3 kt higher than Q1 2017. At its Custom Metallurgical Assets (Altonorte, Pasar, Horne, CCR), copper cathode output fell 11.2 kt to 117 kt year-on-year, mainly reflecting issues being addressed in Pasar’s acid plant. Copper anode production of 126.5 kt was down 13.2 kt comparatively.

African own sourced production rose 36 kt to 92.9 kt y-o-y, mainly reflecting the commissioning of phase 1 of Katanga’s whole ore leach project in December 2017 (production of 27.7 kt in Q1 2018). Katanga cobalt circuit delivered first metal in March 2018 as scheduled.

At Collahuasi (Chile), Glencore’s share of copper production at 60.6 kt was 3 kt higher

test. (2017-18)

than Q1 2017, reflecting higher throughput.

From Peru’s Antamina, the Glencore share of copper production was 36.5 kt, up 20% on Q1 2017. The base period was impacted by the temporary closure of the concentrates pipeline.

Against the more comparable Q4 2017, copper production was up 4%, within the normal range of expectations for variations in ores processed.

The combined Alumbrera, Lomas Bayas, Antapaccay, Punitaqui production was 73.6 kt.

Glencore Australian (Mount Isa, Ernest Henry, Townsville, Cobar) own sourced copper production of 47.8 kt was down 13.4 kt (23%) on Q1 2017, mainly due to timing of maintenance at the Mount Isa smelter, including a periodic furnace rebricking. www.glencore.com

Copper Worldwide Vol 8 No 2

All the above projects are due for completion

by December 2018. www.codelco.com

BHP wage agreements underpin growth The BHP operational review for the nine months ended 31 March 2018 was published on 19 April. BHP Chief Executive Officer, Andrew Mackenzie, said BHP remains on track to achieve six per cent volume growth for the 2018 financial year. Production for the nine months ended March 2018 was 1,290 kt, a 37 percent rise. Escondida copper production for the period was 897 kt (+64%), supported by the start-up of the Los Colorados Extension project on 10 September 2017. The existing agreement with Union N°1 will expire on 1 August 2018 and early negotiations started in April 2018.

Pampa Norte copper production increased to 193 kt due to record production at Spence mainly driven by higher utilisation of the SXEW plants. During the period, BHP successfully completed the accelerated negotiation with Spence Union N°2 (supervisors and staff) with the new agreement effective from 1 April 2018 for 36 months.

Olympic Dam copper production decreased by 18 per cent to 95 kt as a result of its planned major smelter maintenance campaign. Full capacity is now expected during the June 2018 quarter. Antamina copper production increased by 10 per cent to 105 kt. www.bhp.com

Copper cathodes at Mutanda Mining. Photo: Glencore

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SPOTLIGHT – 31ST MB INTL COPPER CONFERENCE | 9

Scrap stockpiling discussed at the ICC Metal Bulletin staged its 31st International Copper Conference at the Ayre Gran Hotel Colon in Madrid from 7-8 March. The event was sponsored by Atlantic Copper, Boliden, CME Group and the LME. The Spanish capital saw 141 registered delegates attend the conference, listening to the presentations that were given and interacting with the panel discussions. An optional field visit to Atlantic Copper’s Huelva smelter and refinery was available on 9 March.

The positive outlook for rising intensity of copper use in Electric Vehicles, as well as in charging infrastructure, was restated, although this may only equate to an additional 500 kt of refined demand by 2023. However, one speaker cautioned that supply restrictions on rare earth metals, such as cobalt, could potentially constrain this, as there is currently only enough cobalt for 5 million of the 30 million electric vehicles that are forecast to be on the roads by 2023.

On the downstream side, Aurubis suggested that a possible way forward was consolidation by product type, rather than by group company.

It had recently strengthened its market position in the European wire rod industry by acquiring Codelco’s minority stake in Deutsche Giessdraht, while entering into an agreement, subject to EU regulators, to sell its entire European and American sheet and strip business to German rival Wieland Werke AG. On the supply side, speakers cautioned against the need for new additional smelter capacity, given the tidal wave of investments that have taken place in China over recent years. Closures might be possible at some of the more inefficient operations, where their future was threatened by emissions control, location, electricity costs or transport infrastructure.

Big scrap

The most interesting and entertaining panel discussion was on copper scrap. Moderator Cristian Schirmeister of AMT declared “Scrap is the headline”. Michael Lion then told delegates that the scrap industry simply “did not know” how the tightened Chinese import restrictions on category 7 copper scrap materials would eventually play out. There were big

Anode production at Atlantic Copper in Huelva, Spain. Photo: Atlantic Copper

question marks about how tough the waste content restrictions would be, and how the inspectors would interpret the new guidelines.

Given that the panel members thought it would “quite impossible” for the industry to comply with the maximum 1% waste content levels stipulated by the Chinese government, even for birch or cliff grade clippings, the scrap metal industry faces the possibility of whole cargoes being rejected.

As it stands, there has already been huge stockpiling of containerised scrap in Hong Kong, awaiting customs clearance into Mainland China, while scrap yards in the USA already have 2-3 months’ backlog of cables and electric motors that would have previously been exported to China. The scrap industry finds itself in a “dilemma” and facing “massive imponderables” in a volatile and unpredictable marketplace over the next 9-12 months.

Michael Lion commented that China may need a major “re-think” on its scrap import policies and it may take a further 1-2 years to fully resolve itself.

A Chinese presenter from Jinrui Futures accepted that the tougher restrictions were likely to leave a 400 - 500 kt void in the Chinese copper supply chain in 2018 that would need to be filled by higher domestic scrap generation and increased imports of concentrates, anode and blister and refined metal. In the meantime, European scrap consumers were benefitting from plentiful availability and discounts as wide as EUR 400 - 500/t from LME prices.

In a conference poll, 54% of delegates identified China as the #1 factor in defining copper prices over the next 12 months. They also thought the chances of a concentrate market deficit were low in the short term, but were of much greater likelihood beyond 2021.

Over the next twelve months, 51% of delegates believed that copper prices would average between US$ 7,250 - 7,500/t, with 22% believing that they would average US$ 7,000 - 7,250/t, and just 5% that they would average in the US$ 7,500 - 8,000/t range.

Author: Jonathan Barnes Author: Jonathan Barnes

Unbenannt-1 1

Copper Worldwide Vol 8 No 2

20.07.2017 11:05:21

Introducing…

The driving force of the refractory industry

10 | PRIMARY SMELTING

Miami Smelter has a long life ahead In his book, “The Living Company” (Harvard Business Review Press, 1997), Arie de Geus describes factors influencing the overall ‘health’ of an enterprise and the characteristics of a truly successful company. Could this concept apply to an operation such as a copper smelter facility?

If so, the Miami smelter in Arizona operated

by Freeport-McMoran can surely claim to be a “living operation” - a successful plant adapting for over 100 years through a number of owners, various economic cycles, and evolving as the industry and the world has changed - a tribute to all who have worked there.

The first smelter at the Miami site commenced operations as the International Smelting Co. in 1915 treating concentrate from a number of mines in the Globe-Miami district. This well-designed plant consisted of concentrate receiving facilities, ten Wedge roasters, three 36.6 m oil-fired reverberatory furnaces, five 3.7 m Great Falls converters and blister casting facilities. The plant expanded and a little over 15 years later in 1932, there were four oil-fired reverberatory furnaces with a total installed capacity of about 330,000 tonnes of concentrate per year, or roughly 80,000 tonnes of copper per year - a large plant for the era.

However, actual output over the years had been trimmed back and only one furnace was in operation at that time.

Miami was the first smelter in Arizona in 1927 to directly smelt filter-cake concentrate in a reverberatory furnace, thus simplifying plant arrangements. A large copper leach plant with an installed capacity of about 15,000 tonnes of copper per year commenced operations in 1926. This was the beginning of a new era at the Miami site and a large amount of innovative development took place over many years perfecting the leaching and copper recovery from mixed oxide- sulphide ores. Interestingly the Bluebird mine, where the original ground-breaking work on solvent-extractionelectrowinning (SX-EW) of copper was carried out, was located near Miami and the mine facilities were later acquired by Inspiration, the new owners of International. The SX-EW process would go on to revolutionise the copper industry for copper recovery from low-grade oxide ores, which today accounts of some 20% of all primary mined copper.

The Miami smelter continued to operate with reverberatory furnace technology and converters throughout the 1940s to the late 1960s also with anode casting (by this time, there were three Peirce-Smith converters and two old Great Falls converters). The copper rod plant was introduced in the late 1960s. Copper production was around 50,000 tonnes of anode copper per year.

The USA Federal Clean Air Act of 1971 required copper smelters to improve sulphur dioxide collection and accordingly, Miami adopted new technology along with an expanded capacity to reach the new

View of the Miami smelter (Photo: FMI)

requirements, since the older reverberatory furnace produced an off-gas too low in gas strength for economic acid production.

Commissioned in 1974, the new plant consisted of a natural gas-fired rotary dryer, a 51 MW Elkem electric furnace for smelting (sized 34.7 m by 10.7 m), five Hoboken converters and a new, 1,200 tpd double-contact Lurgi acid plant. The availability of low cost power contributed to the decision to move to electric furnace smelting. The recent performance of the 36 MVA furnace sized 31.3 m by 10.4 m at Mufulira, Zambia (start-up 1971) supported the technology choice. The new Miami facility then had a capacity of some 408,000 tonnes of concentrate per year, approximating 102,000 t of copper per year - about double that of the 1960s.

In the late 1980s, anticipating a power cost increase, the decision was made to introduce oxygen smelting technology and further expand capacity. Accordingly, a new Isasmelt smelting furnace to replace electric furnace smelting was introduced. By this time, the Inspiration Converter (a large Peirce-Smith type vessel but with a separate feed port) that had replaced the No. 1 Hoboken converter in the mid-1970s was decommissioned. The plant now operated with a matte grade around 62%Cu, with four Hoboken converters and the smelting and converter slags cleaned in the electric furnace operated at low power.

The Isasmelt unit was commissioned in 1992 with a design capacity of 590,000 tonnes of concentrate/year (about 180,000 tonnes of copper per year - an increase of some 40% over that of the former electric furnace smelting unit). Throughput has further increased since that time. An electrolytic copper refinery with a design capacity of 172,000 tpy was commissioned in 1992, however it is presently Copper Worldwide Vol 8 No 2

closed, with copper anodes shipped to the company’s refinery at El Paso, Texas.

Today and into the future

The plant looks to the future with confidence.

Copper production this year is expected to reach 210,000 tonnes, along with over 810,000 tonnes of sulphuric acid - and both are likely to increase in future. Additional concentrate to feed the expanded smelter will come primarily from the company’s Morenci and the Chino operations.

The smelter will continue to treat concentrate from the nearby Sierrita and Bagdad mines.

The Isasmelt unit, recently upgraded with copper coolers to provide for a longer furnace life, remains the sole smelting unit, supported by some 910 tonnes of oxygen per day. Operational improvements made at the Hoboken converters have also boosted converting capacity.

Freeport recently completed a US$ 250 million environmental upgrade at the smelter including: an acid plant upgrade with a caustic tail gas scrubber, converter aisle fugitive gas collection and ducting system, anode furnace off-gas cleaning and the installation of a new, large scrubber unit to handle these collected gases.

With an improved feed system due to be completed by 2019, smelter capacity may reach 910,000 tonnes of concentrate per year, approximating 250,000 tonnes of copper per year. The Miami operations today include in total the leaching operations with a capacity of about 8,500 tonnes of EW copper per year, the smelter as described above, and the 140,000 tonnes/year rod plant - and employ about 730 people. www.fcx.com

Author: Phillip Mackey

RHI and Magnesita.

A new global leader in refractories.

Find out more at rhimagnesita.com PRIMARY SMELTING | 11

Improving converter tuyere line life It is possible to design copper converter tuyere lines to achieve over 30% increase in campaign life by including an expansion allowance Converting of copper matte in primary copper smelters is conducted by injecting air into the molten matte and blister copper for the very purpose of generating iron and copper oxide slags. These slags must be contained by a refractory that, by its mineralogical formulation, is optimised for chemical inertness.

It is recommended that in the highly stressed converter tuyere lines of Peirce-Smith and Hoboken converters, a 50% MgO magnesiachrome brick, manufactured with a pre-fused grain, will provide the optimum resistance to the many stressors in this environment.

These stressors include cycling temperatures, compressive stresses, punching impacts, and fayalite slag and copper oxide contact. In an ideal converter aisle the converter would be subjected to minimal out-of-stack time.

Secondary burners would be available to retain a uniform temperature at the working face of the refractory at the tuyere line. It is thought that efforts to keep the tuyere line refractory at a uniform temperature will prevent the shrinkage of the brick during out-of-stack times, especially opposite the charge mouth.

A typical 60% MgO magnesia-chrome product suitable for the bottom and roof areas of converting vessels need not be especially formulated for environments where high stresses or corrosion by slag is expected.

Invariably the tuyere line bricks are installed with no expansion allowance, as shown in Figure 1, to prevent leaking at the end of the campaign. Almost without exception the tuyere line wears most rapidly at the centre section of the vessel tuyere line opposite the charge mouth. Typically the tuyere line refractory will be replaced three times before a complete converter refractory reline is necessary.

Wear debate

The wear mechanism of the tuyere lines of Peirce-Smith and Hoboken converters has been a subject of endless debate and speculation.

However, there has been an indication that the primary factor in the deterioration of tuyere lines is due to the batch operation of the converting process (1). The cooling of the brick in the tuyere line during out-of-stack times (especially opposite the charge mouth) leads to shrinkage of the brick and resultant opening of the joints. Subsequently, on re-entry of the tuyere line into the bath, the joints become penetrated with matte and re-expansion of the brick is prevented. It is thought that this regular cycle of exiting the bath for slag skimming and replenishment of matte, and re-entering for further blowing, leads to a gradual “ratcheting” of the tuyere brick lining.

If no expansion allowance is furnished between the endplate and the tuyere line

1 Tuyere line bricking commonly contains no expansion allowance to prevent leaking occurrence at the end of the campaign (Note: stack bonding to reduce joints penetrated during tuyere drilling)

3 Installing the end wall brick inside the barrel to allow for the effective decompression of the expansion of the barrel brick at the tuyere line

2 The barrel brick installed at the endplate with an INSBOARD compressible gasket and insulated with a flexible microporous system

4 Application areas of HWI products in a Peirce-Smith converter

refractory of the lining, then the generation of damaging compressive stress will be generated and hot face failure and loss will ensue. It has been definitively shown at the Southern Peru, Ilo smelter and at the BHP, San Manuel smelter that using an “end wall compressive gasket design” offered over 30% increase in converter tuyere line life - See Figures 2 and 3. This significant improvement in tuyere line life can result in substantial economies of operation with much less downtime and increased converter blister production (2,3,4,5).

In summary, it must be stated conclusively that the evidence is overwhelming that the only practical approach to improving the life of a converter tuyere line is the incorporation of expansion allowance at the end walls of the vessel. No brick can withstand the compressive stress of the batch operation of the converter unless this design issue is addressed.

Manual Smelter”. Copper 99 - Vol. V, Smelting Operations and Advances Oct. 10-13, 1999, Phoenix, Arizona, U.S., pp 447-456.

4. T.W. Gonzales, D. Snashell, O. Pasca, and Robert David.

“Converter Operation at BHP San Manual Smelter”. Copper 99 - Vol. V, Smelting Operations and Advances Oct. 10-13, 1999, Phoenix, Arizona, U.S., pp 417-431.

5. Iain B. Mackenzie, O. Pasca, A. Enriques and A.J. Rigby.

“Use of Microporous Insulation in Copper Holding Furnaces at BHP San Manual Smelter”. Copper 99 - Vol. V, Smelting Operations and Advances, Phoenix, Arizona, U.S., pp 457-464.

www.thinkhwi.com 1. A. J. Rigby. “Controlling the Processing Parameters affecting the Refractory Requirements for Peirce-Smith Converters and Anode Refining Vessels”. TMS (The Minerals, Metals & Materials Society, San Francisco EPD Congress 2005. Edited

by M.E. Schlesinger 2. J.Suarez and F. Alvarado. “Refractory Performance in Peirce-Smith Converters at SPCC-Ilo Smelter”, UNITECR 2001 Proceedings, Cancun , Mexico 3. T.W. Gonzales, A.J. Rigby, and O. Pasca. “Refractory Performance in Peirce-Smith Converters at BHP San

Copper Worldwide Vol 8 No 2

Author: Joe Rigby is presently the Senior Applications Specialist in the Industrial Metals Group of Harbison Walker International. He has been actively involved in the development of refractories and furnace design specifically in the copper/nickel industry for over thirty years. He has published several papers on the refractory selection, design and installation methods of linings for non-ferrous smelters, converters and refining vessels in the COPPER 1999, COPPER 2007 and COPPER 2013 global conferences.

12 | ELECTROWINNING

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

METALEX Corner 2 Electrodes for modern copper EW This latest article looks at both electrode design and modifying hydrodynamics to improve plating conditions.

Electrodes are critical elements in the cost management and operation of a copper electrowinning (EW) plant. They are not only sensitive to mechanical design but also to electrochemical performance. With increased demand for higher productivity, electrodes are subject to extreme operational conditions, including the impact of cell hydrodynamics.

EW cells require the following internal essential components: • Insoluble lead anodes - including protective guides and insulators • Cathode blanks - including hooks and edge strips • A cell feed distribution system for enhanced hydrodynamics.

Figure 1 depicts a typical arrangement of electrodes and accessories in a modern electrowinning cell.

Insoluble anodes

Lead anodes made of a PbCaSn alloy are manufactured by a rolling process. The first units were tested at Tyrone in the early 1980s, and eventually became state of the art of the industry with variation in geometry and thickness.

Rolled anodes replaced cast anodes and resolved the issue of softness, bending and corrosion.

Currently, anodes last between six and twelve years, depending mainly on the manufacturing process but also on operational conditions and presence of cobalt sulphate in the electrolyte.

If these electrolytes are high in halogens like chlorides, fluorides, and Nitrates, the life of the anodes is severely affected.

The rolling process focuses on producing a homogeneous blade obtained by successive passes of a plate under rolls, which transfer energy and reduce its thickness to specification. The rolling process produces a reorientation of the grains and reduces their size from the original dimensions obtained in the master ingot by casting the alloy to the desired composition. The result is an allgrains oriented plate, which provides improved mechanical and chemical resistance to the alloy.

Blades are cut to size and joined to the hanger bars by different proprietary methods.

Cathode blanks

Today’s cathode blanks in copper EW (CuEW) have evolved from starting sheets produced over lead blanks at Codelco’s flagship Chuquicamata copper mine in the early 1990’s, to the modern SS316L/CuprologC24/titanium blanks found today in the industry. However, several problems arose with the introduction of blanks in replacement of starting sheets, such as pitting of blanks. Currently, cathodes must be responsive to issues found in the industry associated with: • Corrosion (pitting due to the presence of chlorides and nitrates)

• Failure due to dissimilar welding of the blade to copper bars • Annealing of copper bars due to temperature, driven by exposure to short circuits • Corrosion of the coating due to acid mist, etc. depending on the geographical location of plants and projects.

Carry-over or entrainment of PLS (Pregnant Leach Solution) high in chlorides generates conditions for potential pitting of 316L blanks in electrowinning when aqueous entrainment from leaching reaches the EW circuit. Therefore, it is essential to focus on alloys that are more resistant to corrosion, like the CuprologC25 introduced in Chile some years ago with excellent performance in heap leaching operations, which process ores with high loads of halogenbased salts.

Bar coating with copper instead of solid copper bars have shown some disadvantages, as recoating is becoming mandatory for these types of cathodes. Therefore, considering the expected corrosive effects of the electrolytes, it’s better to focus on cladded solid copper hanger bars, in which the method of minimisation of the copper cross section aims at reducing the cost of cathode blanks. This solution has been proven for many years in the fabrication of Ti blanks used, among others, in the production of starting sheets for the copper electrolytic industry, EW, and electrorefining (ER).

1 Internal arrangement of advanced electrowinning (EW) cells

2 Rolling mill and blade sunder process at one of the manufacturing facilities

3 Assembled anode ready for insertion into the cell for use in CuEW

Cell feed distribution system

Copper electrowinning is a standard technology used by the industry to recover copper as cathodes mainly. From the beginning, EW cells have used parallel electrodes, which have proved to be a very efficient way to use the space.

The main differences are found in: • Interelectrode Distance (75 - 108 mm) • Design Current Density (150 - 415 A/m2) • Cathode Plating Area (0.60 - 1.2 m2 per side) • Anode Thickness ( 6 - 12 mm) • Anode Alloy Material (PbSb - PbCaSn) • Type of Cathode (starting sheet of stainless steel blank).

Some hardware improvements in anode insulators, anode guides, edge strips, among others, complete this relatively modest list of modifications compared with the original cell concept and hardware.

However, the limiting factor for improving productivity using parallel electrodes is mainly current density. Little has been done at an industrial scale to go beyond such a constraint, except the introduction of the flow distributor at Magma Copper in the early 1980’s and Air Sparging, most recently at Minera Spence (2006) and others in this decade. However, this is the most crucial improvement needed by state of the art.

Copper Worldwide Vol 8 No 2

4 Cell top view of electrodes arrangement in electrowinning cells

5 Modified copper bar profile with 316L cladding

6 Electrowinning cell assembly with parallel electrodes

ELECTROWINNING | 13

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2 = Elementary charge of cation (Cu++) F = Faraday constant Considering simplifications beyond the objective of this paper, equation (1) becomes: J = - 2FD/(1-t+) x (Co - Ce)/d (2) Where: d = Double layer thickness

7 Interelectrode flow patterns with and without oxygen evolution

It is obvious that (Co - Ce) increases if the current density J increases. The current density for which the interface concentration is zero (Ce = 0) is called the “limit current density.” The current limit density corresponds to the maximum speed of metal deposition for given normal conditions.

With Ce= 0, equation (5) becomes: J = - 2DFCo / d (1-t+) (3) In equation (3), F and (1-t+) are constants, so by increasing the value of JL we see that D and C0 need to be increased and d decreased.

8 Impact of air sparging in reducing diffusion layer thickness

10 Formation of the cell feed jet

11 Low-velocity emulsion in the bath

To understand the role of improved hydrodynamics in the copper electrowinning cell, its mathematical representation found in any electrochemistry text can be explained as Total Flow J given by the combination of diffusion, convection, and migration: J = J diffusion + J convection + J migration or

J = - D (dC/dx) + CVx + J+ (tx/2F) (1) Where: D = Diffusion coefficient C = Cations concentration per cubic centimetre X = coordinate perpendicular to the electrode surface Vx = Projection of the hydrodynamic velocity on the X axis J+ = Current density in amperes per square centimetre (positive if directed to the origin of X) t+ = Transport number of the cation (ratio of the mobility of the cation to the sum of the mobilities of cations and anions)

The following actions can be taken to improve the total flow to the cathode surface: Influencing D - The diffusion coefficient will be favourably influenced by an increase of the temperature and a decrease of the viscosity of the solution.

Influencing C0 - The copper concentration of the solution should not fall below specified values, otherwise the copper deposit will be deteriorated.

Influencing d - The diffusion layer must be as thin as possible. Electrolyte agitation will be favourable.

Increase in bath temperature is easily obtained by either supplying external heat, isolating the hydraulic circuit and reducing losses through walls and surfaces. The operating range found in the industry balances evaporation, energy consumption, anode coating spalling, among other operating impacts.

Decreasing viscosity is a more volumetric solution associated with the addition of some chemicals which may affect the performance of the solvent extraction step, so it is not so clear it can be easily incorporated.

Copper concentration has been increased in combination with a better flow distribution system as provided by Magma’s cell feed system now a standard for the industry. A minimum of 30 g/L copper in the lean electrolyte is considered protection for obtaining good quality cathodes.

As shown in Figure 7, oxygen evolution in anodes changes the flow pattern from natural convection to an agitated volume generated by the oxygen bubbles reaching the surface of the bath. Due to current distribution, this agitation is not even on the surface, and the bottom part of the cathode is virtually ruled by natural convection controlled by migration of cations and therefore limiting current density.

Reducing thickness of the diffusion layer is probably the best attempt introduced by the industry.

Figure 8 shows the impact of reducing the diffusion layer using air sparging. Air sparging is being used in selected plants which were designed for high current density (415 A/m2) and also adopted by others still running within traditional ranges as a means to improve plating conditions.

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Clearly, air sparging improves hydrodynamics.

However, the hardware has shown to suffer from some technical limitations (injected air needs to be heated and humidified, the installation of an air distribution network is necessary, involving the use of extra energy). It also faces operational and maintenance issues (blocked spargers, failed connections, air leaks, and so on).

The incorporation of the air distributor system inside the cell underneath the electrodes adds more difficulties to cell performance and reduces productivity, as the downtime required for cleaning and maintaining such hardware is less friendly than having a cell with the traditional flow distributor.

In summary, industrial EW conditions from the cathode plating perspective have a limit value for operating current density under traditional conditions using flow distributors, situated in the order of 350 A/m2, which can be increased to the 415 A/m2 range by addition of air sparging for the traditional process. If that limit density is exceeded, the progressive appearance of powder copper and dendrites generate important yield losses and a decrease in quality of the deposits.

Cell hydrodynamics

The EXMAJET® focuses on modifying hydrodynamics to improve plating conditions, allowing the current limit density to be increased and enabling the production of copper cathodes at high current density. EXMAJET® is a cell feed system which breaks the fresh electrolyte into fine particles using self-aspiration of ambient air, therefore not an injection process which requires the gas to be pre-treated. The combination of the standard cell feed solution with ambient air into an engineered flow distributor generates a low-pressure jet at each anode and/or cathode position in the bath underneath the electrodes.

As consequence, an emulsion forms and activates a random pattern electrolyte displacement in the whole volume between electrodes, as shown in Figures 10 and 11.

The movement of the emulsion produces a reduction of the double layer thickness d discussed in previous sections, enhancing the diffusion of cations from the bulk of the electrolyte and generating a homogenous distribution between the top and bottom areas of the cathodes.

Figure 12 (see page 28) shows the results of industrial evaluation of EXMAJET® running at 550 A/m2.

On the contrary, in a similar cell running without an EXMAJET® device, cathode plating showed a coarse crystallisation and uneven distribution between different areas of the cathode, particularly between top and bottom.

Figure 13 (see page 28) shows the texture of deposit obtained in such conditions. Other operating conditions besides current density were similar for both cells.

The above confirms enhancing the hydrodynamics of the cell generates conditions for an evener deposit, therefore allowing operation at higher current densities. www.metalex.cl

Author: Alejandro Lillo, President, Metalex

14 | IWCC TECHNICAL SEMINAR

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Chicago hosts tour de force Almost 80 delegates from 16 countries gathered in early March in Chicago, USA for the 2018 Technical Seminar organised by the International Wrought Copper Council (IWCC) for its members.

The theme of this year’s seminar was Hot & Cold Deformation. The seminar started on 4 March with a tour of the Windy City, allowing delegates to admire its stupendous architectural achievements. After the tour delegates met at the traditional welcome reception.

The two following days were devoted to listening to and discussing the 26 presentations delivered by speakers from trade associations, academia, the equipment industry and copper fabricating companies. These were followed by the opportunity to visit the Mueller Industries brass rod mill in Port Huron, Michigan, and the Olin Brass rolling mill in East Alton, Illinois.

The presentation sessions were opened on Monday morning by Dr. Michael Hoppe (Aurubis), the new Chairman of the IWCC Technical Committee and Seminar. In his welcome address, the Chairman reminded delegates that hot and cold deformation is at the core of the fabricator’s activities and that its efficiency was essential to the success of their business.

Being in the USA, delegates were keen to hear about the latest developments in the North American copper industry. Thomas Passek (Copper Development Association) focused his presentation on substitution, informing the Seminar that substitution of copper by other materials was declining and that the best defence is to push innovation.

The Internet of Things (IoT) appears increasingly to be a major innovative trend, and represents a strong challenge for the copper industry. Brenna Berman (Midwest IoT Council) spoke about the future of IoT for enterprises and municipalities, giving practical examples of IoT initiatives in Chicago. Robert Voss (Panduit) presented on the importance of IoT communication infrastructure, highlighting great opportunities for copper.

André Barten (Achenbach Buschhuetten) explained how the company has developed a technology to interconnect all the equipment in a copper mill.

A key factor for a successful implementation of IoT in a plant is the availability of high quality sensors. Martin Dumberger (MicroEpsilon America) presented a series of optical non-contact sensors to measure movement, position, geometry, temperature and colour of objects like strips. Elke Roller (Vollmer Feinmessgeraetebau) gave many details how it is possible to measure strip thickness on-line with laser gauges to an accuracy of 1µm and even below. According to Marius Westerman (AMETEK Surface Vision), innovations in cameras, computing speed and software allow for greatly improved on-line inspection for defects of strip surfaces. Rainer Sailer (Institut Dr. Foerster) explained how eddy current measurements can detect surface cracks and ferrous inclusions in a wire rod

Chicago is an architectural paradise. Photo: IWCC

Delegates at the opening session. Photo: IWCC

and thus strongly decrease the risk of wire breaks during drawing.

Good modelling algorithms of the various deformation processes are also needed to support IoT. Dirk Helm (Fraunhofer Institute) gave an overview of the different theoretical, experimental and industrial requirements needed for the development of such software.

Alexander Kraemer (Technical University Aachen) highlighted the parameter computing time, presenting a suitably fast algorithm which could help to understand and design rolling passes. Denise Willems (Aurubis Belgium) reported that simulation of the continuous extrusion process revealed that the Copper Worldwide Vol 8 No 2

temperature attained by the metal is higher than expected and that the heat sources are mainly the deformation energy and, to a much lesser degree, friction. Wojciech Misiolek (Lehigh University) gave an academic perspective on how to control the metal flow for extruding asymmetric shapes and for reducing eccentricity in tube drawing.

The three remaining sessions of the Seminar were dedicated to specific deformation processes: rolling, extruding and drawing.

Bettina Schmitz (Wieland-Werke) discussed how process modelling allows for increasing the production efficiency of reroll strips by optimising their thicknesses after hot and

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Group photo at the Olin Brass rolling mill in East Alton. Photo: IWCC

breakdown rolling. The demand for ultrathin copper foil with 5-6 Âľm thickness is a new challenge for rolling mills. Geminiano Chiesa (MINO) and Atsushi Nakamura (JX Nippon Mining & Metals) explained how to achieve such gauges from the perspectives of a rolling mill manufacturer and a fabricator respectively.

Juergen Jestrabek (Aurubis) presented his company’s approach to modernise a 4-high precision reversing mill, not only through technical improvements but also by lean management. Michael Koehler (Sundwiger Messingwerke) demonstrated that submicrometre grain sizes can be obtained in bronze strip with a tin content of up to 12% by optimising the thermo-mechanical process steps. According to Takamitsu Takagi (YKK) the development of in-house machinery is a major aspect of the success of his company in producing slide fasteners. A novel innovation, manganese brass, increasingly replaces nickel silver in order to accommodate the needs of customers with an allergy to nickel.

The reduction of copper tube eccentricity is a continuous task for equipment manufacturers and tube mills. Markus Ecker (SMS Group) and Andrea Scala (Danieli) addressed this

challenge. Both speakers agreed that it is necessary to measure (by ultra-sound) the eccentricity of the tube at the die level and to adjust the deflection of the tube and die axis - but the two companies had different approaches to implement these basic findings.

For HVAC tubes, the elimination of formicary corrosion is needed to fight against declining demand. Dong Zhiqiang (Zhejiang Hailiang) and Hirokazu Tamagawa (UACJ Copper Tube Corporation) presented solutions developed in their companies, such as by reducing the grain size and by micro-alloying copper.

Improvements in continuous extrusion for a large variety of shapes from the perspectives of a fabricator and an equipment manufacturer were the topics of the presentations of Hendrik Busch (Mansfelder Kupfer und Messing) and Johannes Sieberer-Kefer (ASMAG) respectively. Johannes also introduced a novel hot extrusion technology for copper tube mother shells leading to a re-crystallised microstructure. Giuseppe Marcantoni (Properzi International) explained that in a similar way the first drawing steps of wire rod could be replaced by heavy micro-rolling into the 2mm range. This results in a soft wire without any energy-consuming annealing.

As an opening into the future of copper wire applications, Frank Kraft and Keerti Kappaguntula (Ohio University) presented laboratory results showing that the incorporation of graphene into copper increases not only the electrical conductivity of the wire, but also its current carrying capacity.

This short overview shows the many aspects of hot and cold forming covered during the Seminar, as well as some of the new insights gained by those attending. In his concluding remarks, the Chairman pointed out the importance of IoT as a huge opportunity for our business, but also the challenge to implement it efficiently. He was very pleased by the many presentations by fabricators: it should serve as a stimulus for forthcoming seminars. The delegates strongly agreed with the Chairman when he expressed his deep thanks to the speakers for their highlevel contributions, to the audience for their participation to the visited companies, and to the IWCC staff for the excellent organisation of the 2018 Seminar. www.coppercouncil.org

Author: Dr. Jean-Marie Welter

IWCC gives short term forecast The International Wrought Copper Council (IWCC) has completed its latest six-monthly review of the copper market and has finalised its forecasts for copper supply and demand.

The forecasts suggest that in 2018 copper mine production might be 19.98 million tonnes (Mt). In 2019 mine output is expected to increase to 20.38 Mt. Refined copper production in 2018 is forecast to be 23.53 Mt, whilst for 2019, refined copper production is forecast to be 24.36 Mt, an increase of over 3.5 percent.

In descending order of volume, firstly for China, in 2018 the IWCC now expects reported (or real) demand for refined copper to increase by 3.5% to 11.6 Mt. For 2019, the

forecasts currently suggest reported demand in China might be 11.875 Mt, up 2.3% compared with 2018.

Elsewhere, demand for refined copper in the EU-28 in 2018 is forecast to be 3.264 Mt, up 2.7% compared with 2017. A further increase of 0.7% is expected for 2019 when refined copper demand might reach 3.287 Mt. For the USA the IWCC expects demand for refined copper to increase by 2.0% in both 2018 and 2019, taking demand to a possible 1.847 Mt. The latest forecasts for Japan suggest that refined copper demand in 2018 might increase by 3.3% to 1.031 Mt, with a further increase of 0.5% expected for 2019 taking demand in that year to an expected 1.036 Mt. Copper Worldwide Vol 8 No 2

Taking these and other changes into account, global reported refined copper demand in 2018 is expected to increase by 3.0% to 23.8 Mt. For 2019, the forecasts suggest that refined copper demand might be increased by a further 2.4% to 24.366 Mt. Some of the increase in refined copper demand in 2018 may be attributed to the shortage of high-grade scrap which is used by the fabricators as direct-feed. The latest IWCC forecasts suggest that for 2018 the refined copper market might be in a small statistical deficit, and for 2019 the refined copper market might be balanced. www.coppercouncil.org

16 | COUNTRY PROFILE – UAE

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Fulfilling Middle Eastern promise Jonathan Barnes looks at copper demand in the United Arab Emirates The United Arab Emirates (UAE) is a federation of the seven Emirates of Abu Dhabi (the capital city), Ajman, Dubai, al-Fujairah, Ras alKhaimah, Sharjah and Umm al-Qaiwain. The country sits in the southern half of the Persian Gulf and has land borders with Saudi Arabia, Oman and Qatar. The economy is still heavily dependent on oil and gas production revenues from Abu Dhabi and Dubai, but it has become an important commercial and trading centre and has also developed as a popular tourist destination in recent years.

Occupying a land area of little more than 32,300 square miles, and with a population of only 9.4 million, it is still the second biggest Arab economy after Saudi Arabia, with 2017 GDP estimated at US$ 408 billion and GDP per capita of US$ 43,350. It is also the world’s tenth largest consumer of refined copper, with demand of around 370 kt in 2017.

Real GDP growth was expected to slow to 1.4% in 2017 compared to 3.0% in 2016. The main cause of this deceleration is the weaker performance of the oil and gas sector. After expanding by a healthy 3.8% in 2016, this is set to contract by 2.9% as the UAE fulfils its obligation to OPEC to voluntarily cut supply to support prices. However, the non-oil sector was predicted to record resilient growth of 3.3% in 2017 thanks to higher public investment, funded by withdrawals from sovereign wealth funds and bank borrowing, and an expansion in global trade. Much brighter prospects are envisaged in 2018, with an expansion in infrastructure projects, partly to prepare for the Dubai Expo 2020, and continued export growth, which are expected to accelerate GDP growth to 3.9% according to the Ministry of Economy.

The rapid and successful expansion of the downstream copper industry in the UAE has principally happened because of its favourable geographic location and its role as a reliable production and supply ‘hub’ serving Gulf Co-operation Council States and beyond.

It is viewed as a safe and secure country, with excellent infrastructure (free trade zones, sea ports, roads and airports), reliable electricity supply, a responsive government that is ‘open for business’, good access to local finance, and a bridge in business culture between East and West. To give one example, in the UAE it is likely to take only one day to get raw materials (e.g. copper cathodes) delivered from a ship docked in port to a copper wire rod plant, rather than the two weeks that it might take in Saudi Arabia. This is an important aspect, as with there being no refined copper production in the UAE, the country’s wire rod industry is almost entirely reliant on imports of cathodes for raw material supply. The DR Congo and Zambia are the two most important suppliers, with Russia, Iran, the Philippines, Kazakhstan and India contributing smaller tonnages.

Copper wire rod output in the United Arab Emirates surged from 150 kt in 2010 to a peak

Indicative map of Middle Eastern region’s rod and wire producers

of 385 kt in 2016 before dropping back to an estimated 375 kt last year. Union Copper Rod is the leading mill with its 200 ktpy capacity Southwire operation in the Industrial City district of Abu Dhabi. Its wire rod production is typically in the 180-190 kt range, though some of this drawn to bare wire. It is the major open market supplier of rod and drawn wire to customers in the UAE, to non-integrated wire and cable manufacturers in the GCC, and also for overseas export, mainly to the Indian Subcontinent. Ducab, the country’s largest cablemaker, is the second ranked producer from its 110 ktpy capacity Contirod mill in Jebel Ali, just to the North of Dubai. Output is in the 90 -100 kt range and is mainly for internal consumption with a small portion for external sale. Ducab also now operates an aluminium wire rod mill on the same sales principal, since the metal is gradually becoming a more popular choice for conductors in Saudi Arabia.

The number three wire rod supplier is Fujairah Copper and Gold, a subsidiary of Vedanta Resources of India. It is located in Fujairah and operates a Properzi line. Its capacity is around 100 ktpy and it manufactured over 83 kt of copper wire rod in the most recent fiscal year. Although it sells a little rod domestically, to nearby wire and cable companies, the majority of its output is for export to the GCC and the Indian Subcontinent.

Completing the industry is Emirates Copper, a tiny copper wire rod producer operating an Upcast mill in Abu Dhabi.

UAE production growth has been mainly export-led (local regional market and India) though the local market has also steadily developed. Estimated UAE capacity is a little over 400 ktpy so the country is operating at an exceptionally strong capacity utilisation level of over 90%. In 2016, Shilpi Cable Technologies of India had announced plans invest US$ 150 million to establish four production units in the UAE, each of 15 ktpy capacity, to produce copper wire rod, bus bar, tube and pipe and Copper Worldwide Vol 8 No 2

sheet and strip. However, the project plans are currently ‘on hold’ after the parent company encountered financial problems.

In 2016, the UAE exported 205 kt of copper wire rod and drawn wire to the rest of the world.

74 kt (36%) was shipped to India, 52 kt (25%) was sold to Saudi Arabia, 26 kt (12%) was exported to Qatar, 15 kt (7%) to Oman and 39 kt (19%) to all other destinations. Although there are other copper wire rod mills in the GCC - in Saudi Arabia, Oman and Kuwait the need of the region’s wire and cable industry is even greater than the capability of these mills to supply, given that the output of these plants may be constrained by capacity or limited by financial considerations. The UAE is therefore a substantial net exporter of wire rod and drawn wire to the region’s insulated wire and cable industry. Domestically, aside from the volumes of rod and wire consumed by Ducab, the other major local sales in the UAE are to National Cable Industry, Power Plus, Tekab, El Sewedy, Middle East Specialized Cable and Abu Dhabi Cables.

The market outlook for the United Arab Emirates carries a mix of both upside and downside risk. On the positive side, a stronger local economy in 2018 and new infrastructure projects will be a boost to domestic demand.

Moreover, if there is a sustained recovery in oil and gas prices across the GCC States, then that will do much to boost the Saudi Arabian and regional economies, as infrastructure and building and construction projects (which drive wire and cable demand, and hence the copper wire rod industry’s production volumes) are mostly financed by state oil and gas revenues.

On the downside, the potential threat from the commissioning of new rod capacity in the region and in the nearby Indian market threatens to make export markets substantially more challenging, both from securing volumes and a pricing perspective.

Author: Jonathan Barnes

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2018 as good as previous years The impressions gathered from wire/Tube 2018 were that investment has gone up worldwide in infrastructure, the automotive sector, the electrical industry, regenerative energy projects and in oil and gas pipelines.

Across Germany steel and metal processing counts among the ten major sectors of industry.

The steel and NF metal industries have always been reliable early indicators for all other industries - if things go well here, the economy as a whole will benefit. Orders for capital goods like machinery, plants and vehicles are very high and the German economy is very much benefiting from the positive global business climate. More than 71,500 trade visitors (compared to 69,500 in 2016) from 134 countries came to Düsseldorf over the five days. Around 70% of trade fair guests came from abroad and one third of these from overseas. A total of 2,683 companies from 67 countries presented their technology highlights in 16 exhibition halls on more than 117,000 square metres - some 7,000 square metres of space more than at the previous events in 2016.

wire 2018

A total of 1,442 exhibitors from 53 countries showcased their innovations on space

exceeding 65,000 square metres. Most wire exhibitors came from the major producer countries Italy, Germany, Turkey, Great Britain, France, Spain, Austria, the Netherlands and Switzerland. From overseas many exhibitors came from the USA, India, Taiwan, South Korea and China. Trade visitors at wire 2018 were primarily interested in machines for processing and producing wire and cable, steel bars and strips, process engineering tools as well as machines, equipment, tools and auxiliaries. The forming technology and auxiliary materials segments were also in high demand, whilst 20% of the visitors polled stated they were interested in finished products.

Tube 2018

Tube was held in Halls 3 to 7a, 7.0 and 16 to 18 occupying in excess of 52,000 square metres of exhibition space. Overall 1,241 companies from 57 countries were presented. At Tube most exhibitors hailed from Italy, Germany,

Turkey, Spain, the Netherlands, Great Britain, Switzerland, Austria and France. Most overseas exhibitors travelled from the USA, China, India, South Korea and Taiwan to Düsseldorf. Pipe, tubes and accessories, raw materials, machines for producing, finishing and processing pipes, profiles and companies trading with all kinds of tubes met with the highest interest among trade visitors at Tube 2018. A selection of the exhibitors and new products seen at wire/Tube 2018 follows this article.

Business-wise, over 50% of visitors of both trade fairs came with concrete investment intentions, and 70% of visitors were executives with high decision-making authority.

Around 55% of trade fair visitors voiced their satisfaction at having found new suppliers.

Looking ahead, the next wire and Tube fairs will be held in Düsseldorf from 30 March to 3 April 2020. www.wire.de www.Tube.de

Online quality control by radar Based in Bremen in Germany, SIKORA AG began by supplying the wire and cable sector, more recently supplying the fibre optic and plastics markets with inspection, sorting and analysis solutions. Today it has around 200 employees in Bremen, of which 40 are dedicated r&d personnel, and a further 60 internationally-based workers around the world.

At Tube 2018, SIKORA is offering to the steel and other metals markets for the first time its new inline RADAR SCAN 6000, a noncontact radar-based measuring system for tubes and pipes, and a second system called PLANOWAVE 6000 M designed for strip, plate and sheet measurement. The radar technology is based on millimetre waves, similar to that used today in cars to withstand a wide range of environmental conditions.

It is unaffected by dust, steam or heat, using a series of transceivers measuring simultaneously over the full 360 degrees of surface in the case of a tube, and linear

The PLANOWAVE 6000 M measures thickness at production or final inspection stage

The RADAR SCAN 6000 can measure diameter and ovality

moveable transceivers above and below the surface in the case of strips: • The RADAR SCAN 6000 can measure diameter and ovality of blank, rough, cold or hot surfaces at micron levels equally accurately. The measuring range is 75 to 250 mm at frequencies of 80 to 300 GHz. The ECOCONTROL 6000 displays measuring values, and standard interfacing is provided.

• The PLANOWAVE 6000 M measures

thickness at production or final inspection stage. It measures from 0.5 to 100 mm thickness at widths up to 2,500 mm as standard, using similar frequencies and controls as the RADAR SCAN 6000.

SIKORA’s main focus is on continuous improvement of process and product quality.

A rapid payback can be expected by employing this new radar technology. www.sikora.net

Cold welder for strip and tape British company PWM, leading manufacturer of cold pressure welding equipment, presented a new cold-welding machine for wire and strip at wire 2018. The ST40 air/hydraulic cold welder, for joining non-ferrous strip and tape used on armouring lines, will weld copper up to a maximum width of 45 mm and minimum thickness of 0.2 mm - depending on material properties. Like all PWM machines, the ST40 produces reliable permanent bonds stronger than the parent material without loss of electrical

integrity. No set up time is required, and the ST40 is low maintenance, simple and cost effective to operate. Mounted on a trolley, the machine can be wheeled easily to the work area, saving effort and reducing downtime. PWM’s extensive range includes cold welding machines for joining wire and rod from 0.10 mm to 30 mm. It includes small, hand-held machines, manual and powered models that can be used on a workbench or supplied with a trolley, and large energy-efficient rod welders. www.coldpressurewelding.com

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PWM’s ST40 air-hydraulic cold welder for strip-tape and strip

18 | WIRE 2018 REVIEW

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

SIKORA was a first-time exhibitor at Tube 2018. Photo: Sikora

The Southwire Company had a prime location in Hall 9. Photo: Southwire

Visitors at the Continuus-Properzi stand, studying the revolutionary technology based on use of the Properzi Microrolling® Mill. Photo: Properzi

Holton Crest’s display area had a functional HMI display. Photo: Holton Crest

The PWM stand this year. Photo: PWM

The Rautomead stand in Hall 10. Photo: Rautomead

MATERIAL HANDLING SOLUTIONS FOR YOUR INDUSTRY +353 47 80500 Copper Worldwide Vol 8 No 2

combilift.com

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Holton Crest and Industry 4.0 As a forward thinking, progressive organisation, Holton Crest is always thinking about ‘what’s next’ and has been developing its data systems for Industry 4.0 as part of its technological development programme for the next generation of Continuous Rotary Extrusion machines. Industry 4.0 has been described as the fourth industrial revolution, focusing on automation and data exchange in manufacturing technologies in order to create a ‘smart factory’ environment. Focusing on the key elements of interoperability, information transparency, technical assistance and decentralised decision-making, Holton Crest is keen to lead the market in ensuring that its customers benefit fully from

HC2200 continuous rotary extrusion line with single copper feed.

Photo: Holton Crest

the competitive advantages that Industry 4.0 represents, with increased production capabilities, digitalisation and artificial intelligence for precision control

and enhanced connectivity throughout the entire manufacturing process.

The team at Holton Crest have also recently launched a new company website, showcasing the very latest machines and technology available from Holton Crest, where you will find overviews and image galleries of the Continuous Rotary Extrusion machines, along with details of the many different production configurations installed by Holton Crest throughout the world and its range of ancillary products, machine enhancements and support services.

See also the Copper Worldwide Vol 8 No 1 issue pp 22,24 article. www.holtoncrest.com

A very successful event for Properzi At wire 2018, Continuus-Properzi presented its latest innovation: a new process called S.A.M. (Self-Annealing Microrolling®), based on a specialised Properzi Microrolling® mill, to go from 8 mm copper rod to wire with a minimum size of 1.8 mm. Using the motor’s power, the machine reduces the wire diameter but also anneals the wire, saving half of the energy required by the traditional rod breakdown operation.

Properzi’s technical staff introduced it to the many appreciative visitors.

The Properzi organisation provides unparalleled continuous casting and rolling technology for the production of aluminium

Properzi Bar Preparation Unit for producing copper rod from S to XXL rate.

Photo: Properzi

and copper wire rod on a global basis.

The copper rod can be produced from either copper cathodes or 100% low quality

Danieli a firm of innovation in action

Danieli Control Pulpit for nonferrous plants. Photo: Danieli

Italy’s Danieli Centro Maskin division offers the DER-CU Danieli Endless Copper Rod Process to the market, thanks to a strategic alliance with La Farga of Spain. Complete plants from furnace to coiler and packaging lines are available for producing both electrolytic tough pitch and fire refined high conductivity copper rod. The capacity range is 12.5 tph up to 54 tph in diameters from 8 mm to 23 mm. The line rod speed is up to 34 m/s with 8mm rod at 54 tph.

Refining furnaces from 60 tonnes up to 250 tonnes per batch are available.

The DER-CU plant features an intelligent cathodes charger and an advanced combustion system to improve thermal efficiency.

Rod diameter tolerance is within ±2% and continuously measured and adjusted (if necessary) thanks to the patented Danieli HiPROFILE® LITE, based on the laser sectioning principle and built by composing several laser module measuring heads, a method derived from the steel experience where the rod travels up to 120 m/s.

This process ensures a superior blurfree capture, even with the presence of vibrations and transversal bar movement typical of a hot rolling mill.

The process is fully managed by the automation system developed by Danieli Automation. All process parameters are adjustable from the TWS (Technological Working Station). The coiling operations are assisted by latest state of the art robots so as to eliminate the manual operations of rod cutting and sample spooling. This new way of thinking the copper rod plant is possible through taking the best elements of the experience accumulated from steel processing with its extreme conditions. www.danieli.com

Copper Worldwide Vol 8 No 2

copper scrap to yield top quality copper rod.

The product line also includes machinery for the production of nonferrous ingots with the Track & Belt system. In 2014 Properzi added Continuous Rotary Extrusion technology and equipment to its product offering. It is marketed under the ProForm brand name which stands for Properzi Forming.

Properzi is able to supply each plant on an Engineering, Procurement, and Construction (EPC) basis so that the buyer is only minimally involved with the installation, i.e. equipment can also be supplied on a turnkey basis. www.properzi.com

New sealed lid casting from Rautomead

A Rautomead RSL 1400 continuous casting machine. Photo: Rautomead

Rautomead displayed its RSL range of Sealed Lid Continuous Casting Technology for Cu Cr Zr alloys at wire 2018. The sealed lid with gas protection has a cored wire feed, producing 25-30 mm diameter rod at a rate of 250 kg/hr per strand. An example of the ‘as cast’ product properties achievable is: • Composition - Cr 0.55%, Zr 0.03%, bal. Cu • Rod diameter - 28 mm • Casting speed - 250 kg/hr/strand • Tensile strength - 202 MPa. The equipment range features Automated Composition Control. The RSL 1400 Model has 2 strands and will produce 3,500 - 4,000 tonnes output per year. A primary application example would be for welding tips fabrication. www.rautomead.com

20 | CONTRACTS & PEOPLE In brief…

PT Freeport Indonesia saw mill throughput rates affected in 1Q 2018 by maintenance activities on its ore-flow systems and the characteristics of ore processed. Assuming achievement of planned operating rates for the rest of 2018, consolidated sales volumes from Indonesia mining are expected to be 522.7 kt and 2.4 million ounces of gold.

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

First quarter for Antofagasta goes as planned

strong mine and plant performance and an increase in ore grade (0.71% vs. 0.69%). At Collahuasi attributable production increased by 5% to 60,600 t, underpinned by initiatives to improve plant performance.

The planned three-month major maintenance of Line 3 to replace the stator motor on one of the two ball mills started on 12 March. El Soldado production increased by 2% to 9,300 tonnes. Full year production guidance remained unchanged at 630,000 - 660,000 tonnes.

Hindustan Copper Limited (HCL) released its fourth quarter results for 2017 in January. In addressing the 50th AGM in Kolkata last August, the Chairman K. D. Diwan had said it was a momentous milestone to be reaching the 50th anniversary of the company.

India’s only state-owned copper mining company, HCL was incorporated on 9 November 1967 in Khetri to generate an indigenous copper mine production facility in the country. HCL now has a presence across all the value chain of copper, and operates in the States of Rajasthan, Jharkhand, Madhya Pradesh, Maharashtra, Gujarat and Chhattisgarh.

HCL is implementing mine expansion projects to increase its mine production capacity by four times. Malanjkhand underground mine of annual capacity 5 Mt is progressing well, with ore production expected from December 2018. It also has mine development activity with MDO for Banwas mine at Khetri appointed. Also, Environment and Forest clearances have been obtained for Kendadih and Rakha mine re-opening projects located at Ghatsila, Jharkhand. HC’s focus in the 2017/18 fiscal year would be to expedite the expansion programme and ramp up the production from Gujarat Copper Project located at Bharuch in the shortest possible time.

Mr. Diwan also announced in August 2017 the initiation of the HCL ‘Waste to Wealth’ project, involving a compatible technology developed to extract minerals and materials from copper ore tails (CoT). A contract has been awarded for installation and commissioning of a CoT processing plant of annual capacity 3.3 Mt at Malanjkhand in Madhya Pradesh in the 2017/18 fiscal year.

A Memorandum of Understanding was signed between Hindustan C o p p e r L i m i t e d ( H C L) a n d Manganese Ore (India) Limited (MOIL), on 22 April at Malanjkhand Copper Project with an objective to create long term business synergy.

The MoU was inked by Mr Santosh Sharma, CMD, HCL, and Mr Mukund Chaudhary, CMD, MOIL. Under the memorandum, MOIL will procure its entire requirement of high grasde silica sand, used for backfilling of its mines, from HCL’s new CoT unit located at Malanjkhand. Overall the plant is expected to generate high grade silica sand to the tune of 5,500 tonnes per day. This sand will be suitable for road making, construction of building, etc. and is also likely to be used in glass industries after further refining.

www.angloamerican.com

www.hindustancopper.com

www.fcx.com

The VERDER Group Scientific Division has acquired the majority of the Austrian company Qness GmbH, with its hardness testing product line. Qness hardness testing machines comply with recognised standards like Brinell, Vickers, Knoop and Rockwell. The instruments are used both for industrial applications and material research, and in custom-made test lines. www.verder-scientific.com

Chifeng Jinjian Copper Co., Ltd.’s copper smelting upgrading project has started construction in the development zone of Chifeng City. The 5 bn yuan project adopts advanced and mature side-blow smelting with intelligent numerical control blowing, and rotary anode furnace refining technology. The design capacity is 400 ktpy. Trial production is due in 1Q 2020. www.antaike.com

Southern Copper Corp (SCC) has won the tender to develop Peru’s estimated US$ 2 bn Michiquillay copper mine in auction. The SCC proposal was to transfer US$ 400 M to the government and pay 3% royalties, beating Compania Minera Milpo’s US$ 250 M in transfers and 1.875% royalties. Eight other companies did not bid after pre-registration.

Los Pelambres successfully completed labour negotiations in the first quarter

Antofagasta plc CEO, Iván Arriagada said that during the quarter, the firm had successfully concluded the labour negotiations at Los Pelambres. First quarter copper production was down 10.5% to 153,800 tonnes and would increase quar ter-on-quar ter as grades improve during the year and into 2019. The full year our production guidance is unchanged at 705740,000 tonnes. Net cash costs were US$ 1.54/lb for Q1, but guidance for the full year was unchanged at US$ 1.35/lb.”

Los Pelambre s succe s sfully completed labour negotiations with the plant union in February and in March with the mine union.

The one - off signing bonuses re l ate d to th e se th re e -ye a r agreements increased Los Pelambres’ cash costs by 8 c/lb and Group cash costs by 4 c/lb for the quarter, equivalent to 2 c/ lb and 1 c/lb on an annual basis.

These negotiations concluded the Group’s scheduled negotiations for the year. www.antofagasta.co.uk

Anglo American latest figures strong

www.reuters.com

Norilsk Nickel’s Chief Operating Officer Sergey Dyachenko commented on its 1Q18 production results. In April 2018, the first batch of copper concentrate, produced during the hot commissioning stage aiming at reaching the project’s target parameters at Bystrinsky GOK (Chita Copper Project), was shipped to Chinese customers. www.nornickel.com

The KGHM Sierra Gorda Oxide (SGOx) Project assumes the extraction of 133.6 million tonnes of Run of Mine oxide ore on the stationary mound, and building an SX-EW installation with auxiliary infrastructure. Currently, the design phase of the project has been implemented with the choice of the most economically viable variant for the project. www.kghm.com

Qualified Chemical Engineer Stuart Chambers has been Chairman of Anglo American Plc since November 2017

Anglo American had its 100th birthday in Autumn 2017, while its average life of mine today is 30 years. On 24 April, Anglo American reported a 4% increase in total production on a copper equivalent basis in the first quarter of 2018 year-on-year. Copper production increased by 9% to 154,900 tonnes with strong operational performance and higher grade at Los Bronces and improved plant performance at Collahuasi. Production from Los Bronces increased by 12% to 85,000 tonnes due to a combination of

HCL continues its mine expansion projects

Copper Worldwide Vol 8 No 2

CONTRACTS & PEOPLE | 21

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Rio Tinto first quarter production results

PT Freeport Indonesia in ongoing negotiations

Rio Tinto Escondida has been boosted by the ramp up of the Los Colorados Concentrator. Photo: Rio Tinto

The Copper & Diamonds product group’s portfolio of large, high-quality assets includes interests in three of the world’s Tier 1 copper mines.

Their 18 April release said mined copper production of 139.3 kt was 65 per cent higher than the first quarter of 2017, as output recovered at Escondida following a labour union strike in the first half of last year.

Construction of the first drawbell at Oyu Tolgoi Underground is expected in mid-2020.

At Rio Tinto Kennecott, mined copper production in the first quarter of 2018 was 20 per cent lower than the first quarter of 2017 due primarily to temporarily lower head grades, although refined copper production was 19 per cent higher due to the draw down in concentrate inventories that were built up during the smelter shutdown following the fatality in October 2017. Rio Tinto Kennecott tolls third party concentrate to optimise smelter utilisation, with 41 kt concentrate received in 1Q 2018. Tolled copper concentrate is excluded from reported production figures. The pushback of the south wall progressed during the quarter.

It will extend the life of mine and remains on track for completion in 2020.

Mined copper production at Escondida in 1Q 2018 was significantly higher than the first quarter of 2017, due to the labour union strike that impacted production in the first half of last year. This second consecutive quarter of strong production reflects the operational capacity following commissioning and ramp up of the Los Colorados concentrator in the second half of 2017.

At Oyu Tolgoi, mined copper production from the open pit in the first quarter of 2018 was two per cent higher than the corresponding period

of 2017, but 14 per cent lower than the previous quarter due to a planned plant shutdown in January 2018. Due to protests by coal transporters that obstructed the main access road at the Ganquimaodu Border Zone, Oyu Tolgoi declared force majeure in connection with customer contracts for concentrate between 17 Januar y 2018 and 1 March 2018. Safe and normal operations, including underground development, were maintained during the force majeure period, and there was no production impact.

On the Oyu Tolgoi Underground Project, new contractors continue to mobilise with the total project workforce at over 6,700 at the end of March, of which 89 per cent were Mongolian. Lateral development is tracking on plan, and sinking of shafts two and five is complete.

Eight accommodation buildings in the Oyut II camp are now complete and occupancy of these buildings has begun. Construction of the first drawbell is still expected in mid-2020.

Regarding Grasberg, through a joint venture agreement with Freeport-McMoRan Inc. (FCX), Rio Tinto is entitled to a 40 per cent share of production above an agreed threshold until the end of 2021 and 40 per cent of all production t h e r e a f t e r. R i o T i n t o’s f u l l participation has been delayed due to the application of force majeure provisions in the joint venture agreement. The first full year in which Rio Tinto will participate to the full extent of 40 per cent of production is now expected to be 2023.

Rio Tinto’s expected share of mined copper production for 2018 is unchanged at between 510 and 610 kt. Refined copper production is expected to be between 225 and 265 kt. www.riotinto.com

The Freeport-McMoRan (FCX) first quarter results release dated 24 April said its 90.64 percent owned and consolidated subsidiary PT Freeport Indonesia (PT-FI) continues to actively engage with Indonesian government officials to address regulatory changes that conflict with its contractual rights. Since August 2017, the parties have been engaged in negotiation and documentation of a special license (IUPK) and accompanying documentation for assurances on legal and fiscal terms to provide PT-FI with long-term mining rights through to 2041. The completed IUPK would provide that PT-FI construct a smelter within five years and include agreement for the divestment of 51 percent of the project area interests to Indonesian participants at fair market value. In late 2017, the Indonesian government (including the regional government of Papua Province and Mimika Regency) and PT Indonesia Asahan Aluminium (Inalum), a 100 percent state-owned enterprise, formed a special purpose company to acquire Grasberg project area interests. Inalum currently holds 9.36 percent of PT-FI’s outstanding common stock.

In December 2017, the Indonesian government extended PT-FI’s

temporary IUPK to 30 June 2018, whilst in February 2018, PT-FI’s export license was extended to 15 February 2019. Until a definitive agreement is reached, PT-FI has reserved all rights under its Contract of Work (COW), including dispute resolution procedures. PT-FI is currently mining the final phase of the Grasberg open pit, which contains high copper and gold ore grades. PT-FI expects to mine highgrade ore until transitioning to the Grasberg Block Cave underground mine in the first half of 2019. The ore flow system and underground rail line are expected to be installed during 2018. PT-FI continues to review its mine plan for the Deep Mill Level Zone underground mine, which is currently in pre-commercial production. Subject to reaching a definitive agreement with the Indonesian government to support PT-FI’s long-term investment plans, estimated annual capital spending on these projects would average US$ 0.8 billion per year (US$ 0.7 billion per year net to PT-FI) over the next five years, although actual costs and timing could vary depending on the evolution of agreements and whether any COWrelated disputes arise. www.fcx.com

Otto Junker renews strip flotation furnace In March 2018, Otto Junker GmbH completed a modernisation project on an existing strip treatment line including a strip flotation furnace at MKM Mansfelder Kupfer und Messing GmbH. A leading manufacturer of copper and copper alloy primary and semi-finished products, the customer invested in an upgrade that raises the output of a proven installation as part of a production expansion scheme. The degreasing, annealing and pickling line can handle strips in the 0.075 to 1.5 mm gauge and 300 to 850 mm width range and delivers a

maximum furnace temperature of 850 °C. The conversion and upgrade steps performed by Otto Junker GmbH included optimising the strip tension in the annealing process with replacement of the dancer roll, and improving the heat transfer by enhancing flow conditions in the existing interior furnace casing, which has been in service for around 10 years. The furnace’s heating capacity was increased and the burner control system was modernised. In addition, the existing strip stitcher was serviced. www.otto-junker.de

A new experience with La Farga Spain’s La Farga was a first-time exhibitor at wire 2018, supplying many types of semi-finished copper and copper alloys in the form of electrolytic copper rod and alloys (La Farga Rod), manufacture and sale of copper pipes (La Farga Tub), semi-finished products - such as billets, rod and wire - from recycled materials and copper cathodes / recycled materials (La Farga

Copper Worldwide Vol 8 No 2

Lacambra). Also the joint venture SDI La Farga, LLC in the U.S. makes copper rod from recycled material. With over 300 employees and over 200 years of history, brilliantly captured in its museu del coure onsite museum, La Farga is a modern, responsible and innovative partner for all in the industrial setting. www.la farga.es

22 | SAFETY AND MAINTENANCE

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

METALEX Corner 2 - DC busbar systems Electrowinning electrodes (see Pages 12-13) are only as good in operation as the busbars supplying them.

Transporting of electrical current from the power supplying units to the cell banks is through conductors in the form of multiple bars packed according to the total current.

Demand is increasing for better transportation means, given the increase in cell length and size of electrodes. Similar processes, such as ZnEW and selected NiEW operations have opted for the use of aluminium bars instead of copper, merely for economic reasons.

However, when exposed to the CuEW environment, most of the copper plants continue using copper busbars. The design of copper busbar systems includes: • Distance from power supply source to positive and negative ends of the electrical circuit • Power supply configuration • Elevation of cell tops respect to power supply ends • Type of risers to be used, rigid or flexible • Maximum temperature increase allowed over maximum ambient • Maximum current density in transmission (A/mm2).

The design of the DC Busbar system takes into consideration additional elements like the size of the conducting plates, space used, and need for protection, among others. The ultimate combination of material selection, expected flexibility, current carrying capacity, number of conductors, cross sections available, acceptable temperature rise and maximum

ambient conditions will define the most costeffective system.

Short-circuiting frames

During CuEW, cells maintenance is required depending on several factors such as anode corrosion rates, maintenance of distribution piping and air sparging system, cell leaks correction, and so on. To isolate cells, a shorting frame is required to maintain the electrical continuity of the remaining cells and protect anodes from loss of the surface protective layer of lead peroxide.

Shorting frames have been used since Inspiration developed a prototype circa 1973 in Arizona, USA. The original design used knifetype contacts to connect all anodes in one cell with the cathodes on the next cell, therefore jumping the cells with the required service. However, this feature had some fundamental problems: • Due to their rigidity, connectors did not make contact with each electrode. As a result, sever arching happened, damaging the electrode hanger bars.

• Because of the difficulties in bridging anodes to cathodes, cells were bridged between cathodes frequently. Therefore one of the adjacent cells had no current, which severely damages the anodes in that cell.

Modern shorting frames use individual flexible connectors that seat on each electrode, therefore solving the problem of misalignment as well as

DC Busbar system arrangement for a 64 kA facility

the loss of one cell in production, in addition to the one under maintenance.

Further consideration has been given to the use of switched shorting frames, particularly in plants where the capacity of the power supply is at maximum and no spare power is left to compensate for lost time. This is a disadvantage, as any normal plant is designed for a recovery current of no more than 10% to compensate for the time loss beyond what is in the plant’s availability criteria.

Switches suffer from back current produced by the reverse current generated by the battery effect, which usually damages the electronics of these units. When more than one switch is used, additional problems emerge when trying to coordinate both switches operating simultaneously. www.metalex.cl

Author: Alejandro Lillo, President, Metalex

INTENSELY FOCUSED ON: OPTIMIZING REFRACTORY PERFORMANCE. We’re the world-class refractory products that set industry standards. The technical expertise that anticipates, responds and delivers like no one else. And the people who bring extraordinary insight and resolve to every challenge. This is how we work with an intensity that’s unmatched in the refractory industry. This is why, for over 50 years, the world’s largest non-ferrous companies have chosen to partner with us.

Ready to put our intensity to work for you?

INTENSITY AT WORK

+1-800-492-8349

THINKHWI.COM

EVENT PREVIEWS | 23

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GIFA 2019 coming next June GIFA, METEC, THERMPROCESS and NEWCAST - “The Bright World of Metals” is taking place in Düsseldorf again from 25 to 29 June 2019. Everything will be revolving around foundry technology, metallurgy, thermo process technology and castings in Halls 3 to 5 and 9 to 17 on the exhibition site. GIFA, METEC, THERMPROCESS and NEWCAST are separate trade fairs that stand for themselves and their markets. They only present a complete picture of the “Bright World of Metals” together. The range presented at GIFA covers the entire market for foundry plants and equipment, die-casting machines

Get ready for GIFA, METEC, THERMPROCESS, NEWCAST 2019.

Photo: Messe Düsseldorf

and melting operations. The major plant manufacturers are a key feature of METEC, which is already taking place for the tenth time in 2019. Exhibitors there are in particular suppliers of plant and equipment for iron making, steel making and non-ferrous metal production and for casting and pouring molten steel as well as rolling and steel mills. Industrial furnaces, industrial heat treatment plants and thermal processes are the main emphases at THERMPROCESS, while the 5th NEWCAST concentrates on the presentation of castings. www.gifa.com

EMC 2019 to focus on NF sustainability

Asia Copper Week

The European Metallurgical Conference EMC 2019, is possibly the most important conference in Europe dedicated to Non-Ferrous Metals. Running from 23 - 26 June 2019, it will celebrate its 10th anniversary in Düsseldorf together with the GIFA trade fair quartet.

The theme of this conference is ‘Optimum utilization of resources and recycling for a sustainable solution’ - Sustainability of the Non-Ferrous Metals Industry will be examined in respect to its technological, ecological and economic aspects in about 30 topical sessions, which are clustered in three main areas:

(I) Resources/Metals, (II) Materials Processing, (III) Sustainable Production, and (IV) Themes of Current Issues / Best Practices. The conference is upon invitation of the GDMB Society of Metallurgists and Miners and is particularly directed to metal producers, plant manufactures, equipment suppliers and service providers as well as members of universities and consultants.

The announced deadline for submission of 250-300 words abstracts is 30 June 2018.

The Center for Copper and Mining Studies (CESCO) and China Nonferrous Metals Industry Association (CNIA) are pleased to invite you to the sixth annual Asia Copper Week. The 2018 Asia Copper Week takes place from 13-16 November 2018 in Shanghai.

Over 60 industry leaders are expected to be in attendance. The 7th CEO Summit and 7th Asia Copper Dinner both take place on 15 November at Shanghai International Convention Center.

www.emc.gdmb.de

www.asiacopperweek.com

Aluminium is versatile

Still the biggest non-ferrous individual show. Photo: ALUMINIUM 2016

Global production of aluminium has reached a record high level. The energy transition and the transport sector are driving demand for light metals. This positive mood is felt as well at the ALUMINIUM 2018 World Trade Fair - even with six months still to go before it opens its doors in Düsseldorf. From 9 to 11 October 2018,

the Exhibition Centre on the Rhine will again become the global marketplace of the aluminium industry. Spread across six exhibition halls, global players, specialists and young innovative companies will showcase the industry’s complete range, from aluminium production to machines and plants for processing to finished goods and recycling.

The exhibition area will grow to 80,000 square metres, more than 80 per cent of which is already booked. “A clear indication of the current momentum in the aluminium industry”, says Olaf Freier, ALUMINIUM’s Event Director. “We’re confident we’ll crack the 1,000-exhibitor mark at the upcoming event.” www.aluminium-messe.com

June sees Copperbelt shows CAMINEX 2018 - Covering the Copperbelt and Mining, CAMINEX takes place from 5-7 June 2018 at Kitwe Showgrounds, Zambia. Around 100 exhibitors are expected. The organiser is Specialised Exhibitions Montgomery.Event Director. “We’re confident we’ll crack the 1,000-exhibitor mark at the upcoming event.” www.caminex.co.zm

DRC Mining Week Expo & Conference - This event takes place from 13-15 June 2018 in Lubumbashi, DR Congo. Site visits to Tenke

Fungurume Mining in Katanga Province, and Ivanhoe Mines’ Kamoa-Kakula Project are planned. Around 140 exhibitors are listed.

MB Asia Copper Conference 2018 The 14th Metal Bulletin Asia Copper Conference takes place from 13-15 November 2018 in Shanghai, China.

New smelters and expansions at a suite of Chinese copper smelting companies will create fresh demand for concentrates from the third quarter of this year. Major smelters starting up in the coming months include Chalco’s Ningde smelter and Lingbao Jincheng Metallurgical, while Tongling’s Ausmelt project is also due later this year. Part of the CESCO Asia Copper Week and scheduled alongside CESCO Asia Copper dinner, the 14th ACC will hold a pre-conference Pricing Workshop. www.metalbulletin.com/events

Update on ALTA

ZIMEC 2018 - With the current theme “Invest in Zambia - Generating Value, Diversity and Growth Through Collaboration” in mind, the 8th Zambia International Mining & Energy Conference & Exhibition is taking place in Lusaka, Zambia from 21-22 June 2018.

The 23rd ALTA 2018 took place in Perth, Western Australia from 19 - 26 May. Over 310 attendees representing over 190 organisations from 30 countries were confirmed to attend at time of publication. The event comprises three international conferences, plus a one-day In Situ Recovery Symposium and 35 exhibitors. ALTA 2019 is ascheduled for 18 - 25 May 2019.

www.ametrade.org/zimeczambia

www.altamet.com.au

www.drcminingweek.com

Copper Worldwide Vol 8 No 2

24 | MATERIALS HANDLING

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

Design rules in storage and handling Management and staff at the new Combilift global headquarters and manufacturing facility in Monaghan, Ireland graciously and generously hosted well over 2,000 domestic and international visitors over four business days, plus a further 3,600 local people on a public Open Day in early May, to mark its official opening.

Origins and approach

Established by Martin McVicar, Managing Director and Robert Moffett, Technical Director, in 1998, Combilift is a privately held and fully capitalised company. It developed the world’s first multidirectional all-wheel drive IC engine powered forklift in 1998. In its first year of operation, Combilift produced 18 units, 17 of which were exported. The company has more than doubled in the last 5 years and now has 40,000 units in operation in over 85 countries. Combilift is celebrating its 20th year anniversary of lifting innovation and currently exports 98% of its products through its 250-strong international dealer network.

Around 7 percent of annual turnover is invested in research and development.

Aerial view of the new Combilift Factory Headquarters. Photo: Combilift

Factory lowdown

Built at a cost of EUR 50 million, the new 46,500 sq. m (500,000 sq. ft) purpose-built factory is set in 26 developed acres on a 100acre site with room for future expansion when required. With 11 acres of roof space, it is one of the largest manufacturing operations under one single roof in the Republic of Ireland.

Around 200 local suppliers were involved in the construction.

The factory is laid out for workflow, incorporating the latest manufacturing processes with a focus on sustainability, and will enable Combilift to double its output in a single shift across all production lines. A 5S system is being implemented presently, with the leadership of a small internal team.

Four 90 metre moving assembly lines produce a finished truck every 15 minutes. There are 60 welding bays, two plasma cutting machines, three paint lines which use sustainable waterbased paints and three automatic shot blasters to cater for different sized products. Around 12,000 pallet locations ensure ample storage space for parts and components. The facility also includes a 50-seat cinema training room, 5,000 m² of office space and a dedicated R&D Development and Testing Centre. Around 23% of roof space is covered in skylights, enabling staff to work in natural daylight without the assistance of artificial lighting. Other lighting is provided through 1,100 LED lights with individual PIR sensors.

Handling-wise, there are 107 cranes in the factory, with lifting capacities of up to 60 tonnes in the straddle carrier bay (more on those later). Many steel fabrications are welded and assembled on site. A 360° rotating and lifting jig is used for larger assembly works.

More than 50 truckloads of finished products are dispatched from the factory each week, and spare parts are shipped across the world to the dealer network. Despatch is mostly via low loader, although straddle carriers can be, e.g.

Forklifts are assembled in a clean area.

The assembly lines run at around 100 mm/ min. Each machine undergoes around 8 hours of testing in-line, and an average of 3 faults per unit are identified and rectified as a result.

Thanks to Jason Gilmour for an excellent and informative plant tour.

Press conference

View of the new assembly lines. Photo: Combilift

40 ft containerised. The production demand is around 145 units per week at present.

Plant tour

The 2 May tour began in Engineering, where Solidworks is used for design of machines.

A lot of focus is on the centre of gravity under load scenarios. Each and every Combilift truck model and its customised variants are tested for all applicable global standards.

The tour featured an Aisle-Master demonstration. The machine features a carousel turning capability and this one was running on aisle guides with 300 mm clearance in a 1.6 metre aisle. The range can reach up to 12.4 metres high as standard, and a maximum 15 metres. Aisle-Master provides a free complete warehouse planning service including racking layout proposals and storage density calculations. Aisle-Master Ltd is a subsidiary of Combilift.

A EUR 1 million was invested in a threading and milling machine primarily for on-site working of steel parts. This has dramatically reduced the lead time for many parts to minutes instead of weeks.

A spray booth area with overhead conveyors attends to part finishing. Combilift has developed its own two-coat Combispec paint finish with Valpsar.

Copper Worldwide Vol 8 No 2

Martin McVicar gave a Press Conference to journalists. He said Combilift’s products are designed around industry needs and materials handling issues, which are the opportunities to grow the business. Not only does he want the business to be the No. 1 player, but he also wants it to develop the market into new areas and applications. However, he did say “We are delighted to have competition in any market, just as long as they don’t get any orders!”

He also gave some product overviews:

Combi-PPT

Manufacturing plants (e.g. automotive) want to move away from sit-down forklifts to pedestrian equipment. The new Combi-PPT is a high capacity powered pallet truck with lift capacities of 3,000 kg and 6,000 kg, with models with even higher capacities of 7,000 to 16,000 kg available on request. The optional operator’s platform enables stand-on or walk behind operation. Equipped with a patented multi-position tiller arm, the Combi-HCPPT offers safer operation, maximum operator visibility and narrow aisle performance.

Features include: • Power steering • AC motor technology • Rear wheel drive • Patented multi-position tiller arm.

Optional extras consist of fork configurations for reels, wider forks, longer forks, closed fork height, and a slave pallet system is available.

The Combi-PPT was launched during the official opening.

SUPPLIER DIRECTORY | 25

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EQUIPMENT AND MATERIALS PURCHASING BULK MATERIAL HANDLING Kopar Oy

Sepänkatu 2 FI-39700 Parkano Finland Tel: +358 3 440180 E-mail: sales@kopar.fi Web: www.kopar.fi The Combi-PPT is a high capacity powered pallet truck. Photo: Combilift

CONCENTRATE DRYING Tsukishima Kikai Co Ltd

3-5-1, Harumi, Chuo-Ku Tokyo, 104-0053, Japan Tel: 0081 3 5560 6524 Fax: 0081 3 3536 0575 Email: suwa@tsk-g.co.jp Web: www.tsk-g.co.jp Contact: Satoshi Suwa

CONTINUOUS ROTARY EXTRUSION

The Combi-OP is the first purpose-built order picker. Photo: Combilift

Holton Crest Limited

Combi-OP

Also newly launched is the Combi-OP, the first purpose-built order picker on the worldwide market for long products. This ‘man-up’ truck features a long platform to enable the operator to access long products stored at height. It is fitted with guide rollers to enable it to operate in existing guided narrow aisles of just 1.4m - the same width as those needed for Combilift’s GT truck. It enables operators to easily and safely hand pick orders for customers from the roomy elevated platform and it has a capacity of 450 kg. Its overhead guard, light anti-slip floor, self-closing platform gate and guard rails guarantee utmost safety, as does the travel speed and steering angle which automatically adjusts according to lift heights. Features include: • Standing operator over-head guard • Multi-function steering/function control • Dual speed control • Operator display • Guide rollers • AC electric steering • AC motor technology.

Other notable products:

Combi-CSS

The Combi-CSS Container Slip Sheet was developed to accelerate and simplify container and truck loading. Using a hydraulic bar gate, the payload can be slid onto the transporter floor and held in position whilst the slip sheet is removed.

10 Cowley Road, Poole, Dorset BH17 0UJ, UK Tel: +44 1202 681 501 Fax: +44 1202 681 502 Email: info@holtoncrest.com Web: www.holtoncrest.com Contact: Malcolm Ladd

ELECTROLYTIC REFINING Metalex

Hernando de Aguirre 162 Of. 806 Santiago, Chile Tel: 0056 2335 2217 Fax: 0056 2321 8280 E-mail: alillo@metalex.cl Web: www.metalex.cl Contact: Alejandro (Alex) R. Lillo

Mettop GmbH

Peter-Tunner-Strasse 4 A-8700 Leoben Austria Tel: 0043 (0)3842 81787 Fax: 0043 (0)3842 1787-8 E-mail: cu@mettop.com Web: www.mettop.com Contact: Dr. Andreas Filzwieser

ELECTRONIC SCRAP RECYCLING UrbanGold GmbH

Peter-Tunner-Str. 4 A-8700 Leoben Austria Tel: 0043 (0)664 88364080 E-mail: www.urbangold.at Web: recycling@urbangold.at Contact: Dr. Stefan Konetschnik

ELECTROWINNING

COOLING SOLUTIONS Mettop GmbH

Metalex

Peter-Tunner-Str. 4 A-8700 Leoben Austria Tel: 0043 (0)3842 81787 Fax: 0043 (0)3842 1787-8 E-mail: cu@mettop.com Web: www.mettop.com Contact: Dr. Andreas Filzwieser

Hernando de Aguirre 162 Of. 806 Santiago, Chile Tel: 0056 2335 2217 Fax: 0056 2321 8280 E-mail: alillo@metalex.cl Web: www.metalex.cl Contact: Alejandro (Alex) R. Lillo

ELECTROLYTE PURIFICATION

FURNACES Kumera Corporation

Metalex

Combi-SC

The Combi-SC Straddle Carrier range is the most economical handling solution for distribution, shipping and industries with heavy and oversized loads. Its manoeuvrability, light footprint and high customisation offer complete independence when moving containers and oversized loads. Lifting capacity is available from 35 tonnes to over 100 tonnes, e.g. A 20 tonne Straddle Carrier can lift up to 35 tonnes and has no counterweight. There are many possible variants.

The event was notable for the attendance of the British and Australian Ambassadors, among others. www.combilift.com

Hernando de Aguirre 162 Of. 806 Santiago, Chile Tel: 0056 2335 2217 Fax: 0056 2321 8280 E-mail: alillo@metalex.cl Web: www.metalex.cl Contact: Alejandro (Alex) R. Lillo

Copper Worldwide Vol 8 No 2

Kumerankatu 2 FI-11100 Riihimäki Finland Tel: 00358 (0)20 755 4200 Fax: 00358 (0)20 755 4320 E-mail: kumera@kumera.com Web: www.kumera.com Contact: Hannu Mansikkaviita

26 | SUPPLIER DIRECTORY FURNACES Contd Küttner GmbH & Co. KG

Alfredstr. 28 D-45130 Essen Germany Tel: 0049 201 7293 0 Fax: 0049 201 7293 134 Email: team-knf@kuettner.com Web: www.kuettner.com Contact: Dr. Farzad Salehi

FURNACES, HEAT TREATMENT EMA Indutec GmbH

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

MATERIALS HANDLING

PROCESS MODELLING UrbanGold GmbH

Combilift Ltd

Gallinagh Monaghan Town Co. Monaghan Ireland Tel: 00353 (0)47 80500 Fax: 00353 (0)47 80501 E Mail: info@combilift.com Web: www.combilift.com Contact: Sales Office

Peter-Tunner-Str. 4 A-8700 Leoben Austria Tel: 0043 (0)664 88364080 E-mail: www.urbangold.at Web: recycling@urbangold.at Contact: Dr. Stefan Konetschnik

PROCESSING LINES DANIELI FRÖHLING

Kumera Corporation

PROJECT ENGINEERING Contd Mettop GmbH

Peter-Tunner-Strasse 4 A-8700 Leoben Austria Tel: 0043 (0)3842 81787 Fax: 0043 (0)3842 1787-8 E-mail: cu@mettop.com Web: www.mettop.com Contact: Dr. Andreas Filzwieser

RECYCLING TECHNOLOGIES & EQUIPMENT PolyMet Solutions GmbH

Petersbergstrasse 9 D-74909 Meckesheim Germany Tel: 0049 6226 788 0 Fax: 0049 6226 788 100 Email: sales@ema-inductec.de Web: www.ema-indutec.com Contact: Peter Turewicz

FURNACES, MELTING DROSS AND SCRAP

Kumerankatu 2 FI-11100 Riihimäki Finland Tel: 00358 (0)20 755 4200 Fax: 00358 (0)20 755 4320 E-mail: kumera@kumera.com Web: www.kumera.com Contact: Hannu Mansikkaviita

MINERAL PROCESSING Weir Minerals Europe Limited

PolyMet Solutions GmbH

Peter-Tunner-Str. 4 A-8700 Leoben Austria Tel: 0043 (0)3842 817 87 E-mail: andreas.filzwieser@polymetsolutions.com Web: www.polymet-solutions.com Contact: Dr. Andreas Filzwieser

HEAT RECOVERY Küttner GmbH & Co. KG

Alfredstr. 28 D-45130 Essen Germany Tel: 0049 201 7293 0 Fax: 0049 201 7293 134 Email: team-knf@kuettner.com Web: www.kuettner.com Contact: Dr. Farzad Salehi

Halifax Road Todmorden Lancashire OL14 5RT United Kingdom Tel: 0044 1706 814251 Fax: 0044 1706 815350 Email: europe.minerals@mail.weir Web: www.minerals.weir Contact: Sales

PNEUMATIC CONVEYING/ INJECTION

Josef Fröhling GmbH & Co. KG Scherl 12 D- 58540 Meinerzhagen Germany Tel: 0049 (0)2354 7082 0 Fax: 0049 (0) 2354 7082 200 Email: contact@danieli-froehling.de Web: www.danieli-froehling.de Contact: Detlef Neumann

hpl-Neugnadenfelder Maschinenfabrik GmbH

Spangenbergstr. 20 D-49824 Ringe/Neugnadenfeld Germany Tel: 0049 5944 9301 0 Fax: 0049 5944 9301 44 E-mail: info@hpl-group.de Web: www.hpl-group.de Contact: Mr. Hans-Jaochim Biedermann

Küttner GmbH & Co. KG

Schenck Process

Unit 3, Alpha Court Capitol Park, Thorne Doncaster DN8 5TZ UK Tel: 0044 (0) 1302 321313 Fax: 0044 (0) 1302 554400 E-mail: enquiries@schenckprocess.co.uk Web: www.schenckprocess.com Contact: Richard Sims

Alfredstr. 28 D-45130 Essen Germany Tel: 0049 201 7293 0 Fax: 0049 201 7293 134 Email: team-knf@kuettner.com Web: www.kuettner.com Contact: Dr. Farzad Salehi

Peter-Tunner-Str. 4 A-8700 Leoben Austria Tel: 0043 (0)3842 817 87 E-mail: andreas.filzwieser@polymetsolutions.com Web: www.polymet-solutions.com Contact: Dr. Andreas Filzwieser

REFRACTORIES AND INSULATION HarbisonWalker International

1305 Cherrington Parkway, Suite 100, Moon Township, PA 15108 USA Tel: 001 905 977 7694 E-mail: anthony.rigby@thinkhwi.com Web: www.thinkhwi.com Contact: Joe Rigby

PolyMet Solutions GmbH

Peter-Tunner-Str. 4 A-8700 Leoben Austria Tel: 0043 (0)3842 817 87 E-mail: andreas.filzwieser@polymetsolutions.com Web: www.polymet-solutions.com Contact: Dr. Andreas Filzwieser

RHI MAGNESITA

PROJECT ENGINEERING Küttner GmbH & Co. KG

TO ADVERTISE HERE PHONE CHRIS HOLDING +44 (0) 7731 784798

Alfredstr. 28 D-45130 Essen Germany Tel: 0049 201 7293 0 Fax: 0049 201 7293 134 Email: team-knf@kuettner.com Web: www.kuettner.com Contact: Dr. Farzad Salehi

Copper Worldwide Vol 8 No 2

Wienerbergstraße 9 A-1100 Vienna Austria Tel: 0043 (0) 50 213 – 6200 Fax: 0043 (0) 50 213 – 6391 E-mail: nfm-marketing@rhi-magnesita.com Web: www.rhi-magnesita.com

SUPPLIER DIRECTORY | 27

www.copperwor ldw ide. co m

REFRACTORIES AND INSULATION Contd Saint-Gobain Industrial Ceramics Limited

Mill Lane, Rainford St Helens, Merseyside WA11 8LP, UK Tel: 0044 (0)1744 887939 E-mail: craig.d.brennan@saint-gobain.com Web: www.refractories.saint-gobain.com Contact: Craig Brennan

REFRACTORIES ENGINEERING Mettop GmbH

ROLLING MILL TECHNOLOGY Contd Primetals Technologies USA LLC

50 Prescott Street Worcester, Massachusetts, USA 01605 Tel: 001 508 755 6111 Fax: 001 508 849 6573 E-mail: contact@primetals.com Web: www.primetals.com Contact: David Gow

SMELTING – SECONDARY Kumera Corporation

Kumerankatu 2 FI-11100 Riihimäki Finland Tel: 00358 (0)20 755 4200 Fax: 00358 (0)20 755 4320 E-mail: kumera@kumera.com

SAMPLING AND ANALYSIS Alex Stewart (International) Corporation

Alex Stewart International

Web: www.kumera.com Contact: Hannu Mansikkaviita

Küttner GmbH & Co. KG

Alfredstr. 28 D-45130 Essen Germany

Peter-Tunner-Strasse 4 A-8700 Leoben Austria Tel: 0043 (0)3842 81787 Fax: 0043 (0)3842 1787-8 E-mail: cu@mettop.com Web: www.mettop.com Contact: Dr. Andreas Filzwieser

2b Sefton Business Park, Netherton Liverpool, Merseyside L30 1RD, UK Tel: 0044 (0)151 525 1499 Fax: 0044 (0) 151 523 3760 E-mail: analysis@alexstewartinternational.com Web: www.alexstewartinternational.com Contact: Stephen Russell

ROLLING MILL TECHNOLOGY

Tel: 0049 201 7293 0 Fax: 0049 201 7293 134 Email: team-knf@kuettner.com Web: www.kuettner.com Contact: Dr. Farzad Salehi

SOLVENT EXTRACTION Metalex

SCREENING

DANIELI FRÖHLING

Schenck Process Hernando de Aguirre 162 Of. 806

Josef Fröhling GmbH & Co. KG Scherl 12 D- 58540 Meinerzhagen, Germany Tel: 0049 (0)2354 7082 0 Fax: 0049 (0) 2354 7082 200 Email: contact@danieli-froehling.de Web: www.danieli-froehling.de Contact: Detlef Neumann

MINO S.p.A.

Pallaswiesenstraße 100 64293 Darmstadt Germany Tel: 0049 61 51 15 31 0 Fax: 0049 61 51 15 31 66 E-mail: vibrating@schenckprocess.com Web: www.schenckprocess.com Contact: Ingo Fjelsten

SMELTING – PRIMARY Küttner GmbH & Co. KG

Via Torino 1 15122 - San Michele (AL) P.O. Box 362 – 15121 Italy Tel: 0039 0131 363636 Fax: 0039 0131 361611 E-mail: sales@mino.it Web: www.mino.it Contact: Geminiano Chiesa

Alfredstr. 28 D-45130 Essen Germany Tel: 0049 201 7293 0 Fax: 0049 201 7293 134 Email: team-knf@kuettner.com Web: www.kuettner.com Contact: Dr. Farzad Salehi

Santiago Chile Tel: 0056 2335 2217 Fax: 0056 2321 8280 E-mail: alillo@metalex.cl Web: www.metalex.cl Contact: Alejandro (Alex) R. Lillo

WEIGHING AND FEEDING Schenck Process

Pallaswiesenstraße 100 64293 Darmstadt Germany Tel: 0049 61 51 15 31 0 Fax: 0049 61 51 15 31 66 E-mail: sales@schenckprocess.com Web: www.schenckprocess.com Contact: Martin Brauer

ONE ENTRY WITH LOGO FOR FOUR ISSUES (2018) £185 / EUR e265 / USA $320 Copper Worldwide Vol 8 No 2

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28 | PERU PROGRESS

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

New frontiers for the red metal In Copper Worldwide Vol 8 No 1 issue pages 3 & 8, CRU Consulting reported in its 17th World Copper Conference Special Preview that 53 percent of Peruvian mine production would be renegotiating labour contracts in 2018.

Minerals railway project

Come in number two The 67th and current President of Peru is Martín Alberto Vizcarra, a civil engineer and businessman who was sworn in at the Congress in Lima on 23 March 2018. Mr Vizcarra previously served as Governor of the mining-rich Moquegua department (2011-2014), Minister of Transport and Communications of Peru (2016-2017), and Ambassador of Peru to Canada (2017-2018). As the former Vice President, he is expected to serve out the remainder of the Pedro Pablo Kuczynski (who resigned amid allegations of corruption) term, which ends in 2021. Speaking after the

ceremony, he urged all sides to put an end to a politics of confrontation and work together to achieve growth in a “new beginning”.

Peru has a US$ 58.5 billion pipeline of mining projects, according to the Energy and Mines Ministry in April. The world’s second biggest copper producer after Chile expects to produce at least 3 million tonnes of copper in 2021.

Peru is expecting production from Chinalco, Minsur and Bear Creek Mining to increase output by 30 percent this year, among others.

More project news below...

Miners report progress Southern Copper Corporation reported in late April on its portfolio of projects in Peru with a total capital budget of US$ 2.9 bn, of which US$ 1.7 bn has already been invested. The US$ 1.255 bn Toquepala Expansion Project in Tacna includes a new state of the art concentrator that will increase Toquepala’s annual copper production by 100,000 tonnes to reach 245,000 t in 2019, a 69% production increase. As of 31 March 2018, SCC has invested US$ 968.1 million in this expansion. The project has reached 90% progress and is

expected to initiate production in the 3Q18.

At Tia Maria in Arequipa, SCC has completed engineering and after having complied with all environmental requirements, has obtained the approval of the environmental impact assessment. It is now working jointly with the Peruvian Government to obtain the construction license for the 120,000 tonne SX-EW copper per year greenfield project, which has a total capital budget of US$ 1.4 bn. SCC expects the license to be issued in 2018. www.southernperucopper.com

Quellaveco decision update In 2012, Anglo American reached an agreement with the Moquegua community on various aspects of the Quellaveco Open Pit Copper Mine project. This included the use of water, environment and social responsibility, and establishing a social fund to finance Moquegua projects. The greenfield project is located 34 km east of the town of Moquegua.

Quellaveco is expected to produce some 225,000 t of copper annually and the permits to develop the mine are in place. The project has been stalled since 2013, but US-based construction firm Fluor subcontracted earthmoving work at Quellaveco to local company Grana y Montero in early April.

Anglo American indicated its desire to reduce its stake in the US$ 5 bn Quellaveco project at the end of February, according to an online report by The Australian Financial Review.

Anglo owns 81.9 per cent of Quellaveco.

Shareholder Mitsubishi , and Miners BHP, Rio Tinto and MMG were also thought to be likely investors in Quellaveco.

At the Anglo American Plc Annual General Meeting for shareholders in London on 8 May, Chief Executive Mark Cutifani said the Quellaveco copper deposit in southern Peru is a world-class project with a significant resource endowment, a first quartile cost position, and a 30-year mine life with significant expansion

The Peruvian government is evaluating a US$ 2.4 bn railway project to transport mineral concentrates from the copperrich Andean region to the Pacific coast for export, according to Reuters. Deputy Mines Minister Ricardo Labo said the proposed railway would start in the highland region of Apurimac and stretch 600 km (373 miles) to the coast, carrying concentrates from MMG Ltd’s Las Bambas mine and other copper and iron projects due to come online in the next 15 years. The railway could transport copper from future mines in the region, including deposits such as First Quantum Minerals Ltd’s Haquira, Southern Copper Corp’s Los Chancas, Panoro Minerals Ltd’ Cotabambas and Buenaventura’s Trapiche.

Public-private financing would be most likely, but the transportation ministry must first approve the proposal.

Las Bambas alone produced about 453,000 tonnes of copper in 2017, a level requiring more efficient transportation solutions.

Former President Pedro Pablo Kuczynski had promised to pave the roads around Las Bambas, but a railway might help ease tensions between mining companies and farming communities that have complained about the dust and noise created by hundreds of diesel trucks transporting copper every week. In 2016, a farmer near Las Bambas was killed in clashes with police in a roads protest, and three were killed in 2015 demonstrations against the mine.

Villagers sometimes block these roads to demand compensation or action. www.reuters.com

and life extension potential. Anglo has significantly de-risked the project by securing the major permits and benefits from considerable local community and government support. It is finalising its verification work now, is in the process of selling a minority share, and expects to bring the proposition to the Board for consideration during 2018. www.angloamerican.com www.afr.com

Electrodes for EW Figures from the METALEX Corner 2 article on pages 12 and 13 - Figure 12 shows the results of industrial evaluation of EXMAJET® running at 550 A/m2. In a similar cell running without an EXMAJET® device, cathode plating showed a coarse crystallisation and uneven distribution between different areas of the cathode. Figure 13 shows the texture of deposit obtained. Enhancing the hydrodynamics of the cell generates conditions for an evener deposit. www.metalex.cl

Cathode texture produced with EXMAJET® at 550 A/m2

Copper Worldwide Vol 8 No 2

Cathode produced at 550 A/m2 without EXMAJET®