{"id":1125551,"date":"2019-07-09T12:00:35","date_gmt":"2019-07-09T12:00:35","guid":{"rendered":"https:\/\/www.mining.com\/?p=996074"},"modified":"2019-07-09T12:00:35","modified_gmt":"2019-07-09T12:00:35","slug":"south32-eyes-chiles-caserones-copper-mine","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1125551","title":{"rendered":"South32 eyes Chile\u2019s Caserones copper mine"},"content":{"rendered":"<p>Australia&#8217;s\u00a0South32\u00a0(ASX, LON, JSE:S32)\u00a0is <a href=\"https:\/\/www.theaustralian.com.au\/business\/dataroom\/south-32-pursues-caserones-mine\/news-story\/d1cd253cbe0c36ec743be3bb5cefafc4\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">said to be interested in adding Chile\u2019s Caserones copper mine<\/a> to its portfolio, amid a looming supply crunch of the industrial metal, which is a key component in the batteries\u00a0that powered electric cars.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The mine\u2019s majority owner, Japan\u2019s mining and energy conglomerate JXTG Holdings Inc., allegedly <a href=\"https:\/\/www.mining.com\/japanese-owner-chiles-caserones-copper-mine-said-mulling-sale\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">began exploring the asset sale in April<\/a>, in part because of rising copper prices, but also due to the project\u2019s mounting challenges.<\/p>\n<p>Caserones,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/mining.com\/chiles-caserones-copper-mine-close-reach-full-capacity-weather-forced-3-week-shutdown\/\" >behind schedule<\/a>\u00a0ever since it began producing in May 2014, has not only been affected by a series of technical problems in its ramp-up phase, but it has also\u00a0cost its Japanese owners, which include Mitsui Mining &amp; Smelting and Mitsui &amp; Co., <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mining.com\/mitsui-posts-first-loss-ever-amid-2-3bn-copper-gas-write-downs\/\" >hefty impairment charges<\/a>.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Caserones majority owner, JXTG Holdings Inc., began exploring the asset sale in April, in part because of rising copper prices, but also due to the project\u2019s mounting challenges.<\/p>\n<\/blockquote>\n<\/figure>\n<p>The project\u2019s cost is now estimated<br \/>\nin $4.2 billion, more than double the original $2 billion planned, as rising labour<br \/>\ncosts and bad weather continue to hit the project.<\/p>\n<p>On top of that, operator Minera<br \/>\nLumina Copper Chile (MLCC) is currently facing&nbsp;<a href=\"https:\/\/mining.com\/chilean-watchdog-fine-lumina-copper-35-9b-environmental-breach\/\"  rel=\"noreferrer noopener\">fines of up to $54.8 million<\/a>&nbsp;for infractions to the<br \/>\nprovisions established in its mining permit.<\/p>\n<p>The new president of JX Nippon Mining &amp; Metals, the mining and smelting unit of\u00a0JXTG,\u00a0<a href=\"https:\/\/www.reuters.com\/article\/us-jxhd-metals\/japans-jx-nippon-mining-seeks-pot-of-gold-in-high-tech-chips-batteries-idUSKCN1TY23Q\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">said last week<\/a> that while the company wasn\u2019t planning to sell all or part of Caserones, he wouldn\u2019t rule out such a possibility. \u201cWe are always looking at improving our portfolio through buying and selling assets,\u201d Seiichi Murayama said.<\/p>\n<p>The executive, however, noted that JX<br \/>\nwas not in position to make another huge investment in a new copper mine.<\/p>\n<h2><strong>Supply decline<\/strong><\/h2>\n<p>The world\u2019s main copper producing<br \/>\nnations have been showing output declines this year, according to the&nbsp;<a href=\"https:\/\/www.icsg.org\/index.php\/component\/jdownloads\/finish\/114\/2940?Itemid=\"  rel=\"noreferrer noopener\">latest monthly&nbsp;bulletin<\/a>&nbsp;from the International<br \/>\nCopper Study Group (ICSG).<\/p>\n<p>Global production declined by about<br \/>\n1.3% in the first quarter of 2019 with Chile, the world\u2019s No.1 copper producer,<br \/>\nleading the pack. The country\u2019s output fell by 5% mainly due to lower head<br \/>\ngrades.<\/p>\n<p>Industry analysts at CRU believe<br \/>\nthat is undeniable that global demand for copper will soon surpass supply.<\/p>\n<p>Over the past year there has been<br \/>\nboard approvals for several high-profile expansions and new copper projects<br \/>\nthat are due on-stream over the next five years.<\/p>\n<p>CRU says the coming online of major projects, including Anglo American\u2019s\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/mining.com\/anglo-close-selling-part-stake-giant-peruvian-copper-project\/\" >Quellaveco<\/a>\u00a0(2022), Teck Resources\u2019\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/mining.com\/teck-chooses-sumitomo-develop-chilean-copper-project-1-2b-deal\/\" >Quebrada Blanca expansion<\/a>\u00a0(2021) and\u00a0<a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/mining.com\/first-quantum-plans-327m-expansion-giant-copper-mine-panama\/\" >First Quantum\u2019s Cobre Panama<\/a>\u00a0(already in production) should momentarily eliminate the gap between supply and demand. <\/p>\n<p>The research group now expects 900,000 tonnes a year more mine copper supply by the early 2020s than at this time in 2018.\u00a0 <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Australian miner is said to be mulling the acquisition of the operation, in a deal estimated in over $1 billion.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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