By Leia Michele Toovey – Exclusive to Copper Investing News
Copper finishes the week with a steady rise. The Friday opening price of the metal was $8,320/ tonne compared to Thursday’s price of $8,230/ tonne, despite the fact that concerns over shrinking Chinese demand, and the resolution of the Latin American strikes were expected to initiate a price decline. Stockpiles grew on the Shanghai Copper Inventory, up to 38,150 tonnes from last week’s 36,175 tonnes. Conversely, the London Metal Exchange reported falling inventories. Friday’s record breaking crude prices of $144.78 per barrel also extended support.
Company News
The competition heats up for the development of the Udokan Copper Field in Russia, with Metalloinvest placing a last minute bid on the Friday July 11th deadline. So far, Norilsk Nickel (GMKN.MM) Russia’s largest copper producer, Strikeforce Mining and Resources Ltd. (SMR), and Onexim Group have all expressed interest. The winner will most likely be joined by state owned Russian Technologies in the development of the copper field.
Inmet (TSX: IMN) faces unforeseen delays at their La Cruces copper project in southern Spain. These delays are caused by an unexpected ground movement in a recently constructed storage site for ground residue. Inmet stated that no inquiries or negative environmental impacts resulted from the surprise occurrence; however, investigation into the cause is likely to take weeks. An Inmet official released the statement “The extent of any delay in the project schedule that may result from the event cannot be conclusively determined until the investigation is fully completed and the cause of the event is identified.” Inmet holds 70 percent ownership in this mine, which reportedly holds 1.1 million tonnes of copper, the highest grade of unexploited copper deposits in the world.
Atlas Consolidated Mining and Development Corp (AT) announced today that its copper subsidiary, Carmen Copper Corp. (CCC), has started mining operations in Toledo City, Cebu. Ore stockpiling has commenced near the already commissioned primary crusher, with the rest of the mine set to be commissioned over the next few weeks. Atlas also announced that it has been granted a Mineral Production Sharing Agreement, covering an area of roughly 648 hectares in Toledo City that forms part of Carmen’s contract area. Carmen had planned to boost copper production this year, with the rehabilitation of its Toledo mine complete. Carmen’s coffers fell short, but Atlas was able to step on board and raise $140 million in capital. Of these funds, $100 million is from Deutsche Bank and $40 million from a Singapore-based financing firm, Crescent Asian Special Opportunities Portfolio. Carmen’s copper operation in Toledo City was the biggest in Asia from 1955 until 1994, when it was suspended
Ascendant Copper Corporation’s (TSX: ACX) name change is affective today. At a June 25th special meeting of shareholders, the company decided a new moniker “Copper Mesa Mining Corporation” would better reflect the company’s current exploration focus. The completion of the two recently acquired near-term producing copper projects in the southwestern United States is the company’s current mining initiative. Copper Mesa Mining Corp. is now trading on the Toronto stock exchange with the ticker “CUX”.
Big Movers This Week
Anvil Mining Ltd. (AVM: CN) climbed 4.6 percent to C$8.93, with record breaking stock advancements as high as 13 percent. The copper producer was one of two Canadian companies allowed to resume cobalt concentrate exports from the Democratic Republic of Congo after the African country’s southern Katanga province halted shipments three weeks ago.
Equinox Minerals Ltd. (EQN: CN) rebounded from its biggest drop in two years, advancing 2.6 percent to C$3.96. The company stock tumbled 14 percent in the previous two sessions as a result of a July 7th fire damaging the main transformer on their Zambian project. New equipment will need to be purchased for completion of Africa’s largest copper mine.
Copper Criminals still Taking Victims
Historically, copper prices are still at a high, and this fact is likely to blame for the growing amount of copper thefts. Many criminals are trying to cash in on the high copper prices, leaving local businesses as victims. Criminals steal copper composed instruments, anything from roof material to rolls of copper wire, and cash them in at scrap metal depots. In Brooklyn, NY, since the end of June, goods totaling a value of almost $40,000 have been heisted. In Florida, the Sheriff is still searching for three suspects in the theft of $367,000 worth of Copper from a wind turbine assembly plant. Fortunately, there has been some headway in catching these thieves. In Phoenix, four men are currently in custody for trying to heist a 2,500 lb spool of copper wire. This past week, a return thief to a Dallas store faced a very drastic consequence.
