Copper Industry News
1. Frequent strikes at Chilean copper mines
The Escondida copper mine in Chile has frequently encountered strikes in recent years. According to statistics, the mine is the world's largest copper mine, but the mine has frequently experienced strikes in recent years: in 2003, the workers of the mine demanded a pay raise, otherwise they would go on strike; in 2006, the mine again triggered a large-scale strike due to labor-capital disputes; in 2011, the mine entered a strike period again; in 2013, Asian Metal reported that the mine encountered an unexpected strike again.
The strikes at the Escondida copper mine in Chile were basically caused by labor-capital disputes. Each strike lasted for half a month or even longer, which seriously affected the copper production of the mine and had a great impact on the global copper production supply and copper price trend.
In addition to the mine, there are similar strikes in other copper producing countries in the world, but because Chile is the world's largest copper producer and exporter, the large-scale strikes of copper miners in the country have the most severe impact.
2. Freeport sells its stake in Chilean copper mine for $1.8 billion
On October 6, 2014, Freeport-McMoRan, the world's largest listed copper miner, said it had reached an agreement with Canada's Lundin Mining to sell its 80% stake in the Chilean copper mine Candelaria to Lundin Mining for $1.8 billion in cash and up to $200 million in earnings over the next five years.
3. Rio Tinto plans to raise $6 billion for investment in Oyu Tolgoi
In May 2015, after two years of intense negotiations, Rio Tinto reached an agreement with the Mongolian government to clear the way for the Oyu Tolgoi expansion project, but the specific terms of the agreement are still under discussion. Rio Tinto said it will raise $6 billion for its investment in Oyu Tolgoi, of which more than $4 billion will be raised through third-party platforms.
4. Hanergy's copper indium gallium selenide technology has achieved a breakthrough
In March 2015, Hanergy Solar, a listed company under Hanergy Holding Group, announced that the company's CIGS (copper indium gallium selenide) thin-film solar technology has made another major breakthrough. The conversion rate of its CIGS thin-film solar cells has reached 20.5%, and this technological breakthrough has been tested and certified by the National Renewable Energy Laboratory (NREL). This is another technological innovation after Hanergy announced in December 2013 that its CIGS (copper indium gallium selenide) thin-film solar photovoltaic conversion rate reached 19.6%.
Hanergy's leading position in CIGS thin-film technology also means China's leading position. At present, China has surpassed traditional Western photovoltaic powers in thin-film solar technology.
5. Jinchuan Company's copper smelter had a safety accident and 2 people died
At 11:05 on June 12, 2014, two employees in the copper smelting operation area of the copper smelter of Jinchuan Group Company were hit by the oxygen lance counterweight during the debugging of the oxygen lance. They were sent to Jinchuan Company's employee hospital for rescue but died in vain. The accident caused 2 deaths.
6. The United States made a final ruling on the anti-dumping administrative review of seamless refined copper tubes from China
On June 5, 2015, the U.S. Department of Commerce made a final ruling on the anti-dumping administrative review of seamless refined copper tubes from China, Golden Dragon Precise Copper Tube Group, Inc., Golden Dragon Holding (Hong Kong) International, Ltd, Hong Kong GD Trading Co., Ltd: 10.50%, China generally: 60.85%.
On December 30, 2013, the U.S. Department of Commerce initiated an anti-dumping administrative review investigation on seamless refined copper tubes from China, with the investigation period from November 1, 2012 to October 31, 2013. The customs codes of the products involved are 74111010.30 and 74111010.90.
7. Affected by tax disputes, Zambia's copper production will decline in 2015
Christopher Yaluma, Minister of Mines, Energy and Water Development of Zambia, said that due to tax disputes, Zambian producers cut copper production in 2015, resulting in Zambia's copper production being lower than in 2014.
In January 2015, Zambia, Africa's second largest copper producer, promulgated a new tax system, abolishing the income tax for miners and imposing a 20% tax on companies to increase government revenue. Affected by factors such as layoffs and closures of mining companies, the government subsequently stated that it would reduce taxes and resume income tax collection from July 1, 2015.
"There is still a lot of uncertainty about the tax system in the next four to five months," Yaruma said in an interview at a conference in Lusaka, the capital of Zambia, on June 10, 2015. "Copper production is indeed an important factor that deserves our consideration. Last year, Zambia's copper production was low and this year is expected to remain low." Zambia's mining department said that Zambia's copper production fell to a three-year low of 708,258 metric tons in 2014. The country's copper production in 2015 will also be affected by low dam water levels in the country, which led to power shortages. Zambia's copper exports account for 75% of the country's total exports and about 25% of government revenue. 8. Zambian government sells state-owned copper mine shares The Zambian government has sold 15.9 million shares of Consolidated Copper Mines-Investment Holdings to the national pension fund for $80 million. The equity transfer was completed on June 9, 2012. The agreement marks the first step in the government's plan to reduce its stake from 87.5% to 60% to reduce its growing fiscal deficit.
The agreement follows a decision to reduce underground mining royalties from 9% to 6% and to keep the open-pit mining tax stable at 9%. Once approved by parliament, the resolution will take effect on July 1, 2015.
Zambia, Africa's second-largest copper producer, produced 730,000 tons of copper last year. The International Monetary Fund predicts that the transfer of the United Copper Investment Holdings will go some way to reversing Zambia's fiscal deficit.
Copper recently traded at $2.75 a pound in New York, down 11% from last year. Copper exports account for about 70% of Zambia's exports.
