RPT-COLUMN-Doctor Copper ends 2019 with a new-found spring in his step – by Andy Home (Reuters U.S. – December 22, 2019)

https://www.reuters.com/

LONDON, Dec 20 (Reuters) – Doctor Copper is ending the year on a high note. London Metal Exchange (LME) copper has this morning hit a seven-month high of $6,235.50 per tonne, having broken out of its previous $5,500-6,000 range earlier this month.

Funds have been covering back short positions and building new long positions as bank analysts turn more positive on copper’s prospects for next year. The trigger for Doctor Copper’s resurgence was the announcement of a “Phase One” trade deal between the United States and China.

The deal is still somewhat nebulous and no-one seems sure whether there will be a “Phase Two”, but, to quote Goldman Sachs, there is a sense that “US-China tariffs have peaked”. (“Macro at a Glance”, Dec. 18, 2019). That in turn, it is hoped, will help reinvigorate stuttering demand from China’s manufacturing sector.

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Study of copper-nickel mining’s effect on Boundary Waters dropped from bill – by Jimmy Lovrien (Duluth News Tribune – December 17, 2019)

https://www.duluthnewstribune.com/

Language that would have required a study of the impact of copper-nickel mining on the Boundary Waters Canoe Area Wilderness was dropped from the Department of the Interior, Environment and Related Agencies Appropriations Bill this week.

It would have commissioned a report from the National Academy of Sciences “on the impacts on ecosystem services of the Superior National Forest and the Boundary Waters Canoe Area Wilderness resulting from a Twin Metals sulfide-ore copper mine located in the watershed of the Boundary Waters Canoe Area Wilderness” but it was removed from the final agreement by White House negotiators, a spokesperson for U.S. Rep. Betty McCollum, D-St. Paul, who authored the bill, confirmed to the News Tribune Tuesday.

Twin Metals, owned by Chilean mining conglomerate Antofagasta, is hoping to build a large underground copper-nickel mine near Ely, within the Rainy River Watershed and on the edge of the BWCAW. Critics say the project could send tainted runoff into the BWCAW while supporters say the mine would bring much-needed jobs to the region.

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Nevada Copper starts production at mine in western U.S. – by Ernest Scheyder (Reuters U.S. – December 16, 2019)

https://www.reuters.com/

(Reuters) – Nevada Copper Corp said on Monday it has started production at its Pumpkin Hollow mine in the western United States, one of the first new mining projects to open in the country in decades.

The mine is opening just as copper prices are projected to rise due to increasing demand from the electric vehicle industry. Once seen as a laggard in the global mining industry, U.S. copper deposits have drawn nearly $3 billion in recent investments from small and large miners alike.

Nevada Copper spent about $200 million to develop the underground mine, less than 60 miles (100 km) from Tesla’s massive Gigafactory in the state’s northern edge. The mine is expected to produce about 27,000 tonnes of copper concentrate annually.

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Copper Tapped as the Next Big Metals Trade of 2020 – by Aoyon Ashraf (Bloomberg News – December 17, 2019)

https://www.bloombergquint.com/

(Bloomberg) — Copper, often called “Dr. Copper” due to its correlation with the economic cycle, could be the trade of 2020, as most industry analysts expect a “lift-off” for the metal as global demand recovers.

Gold miners had a blockbuster year in 2019 owing to expectations of U.S. Federal Reserve rate cuts and as geopolitical tension mounted between the U.S.-China. But concern about dampened global demand as a result of trade threats left base metal miners limping into the new year.

But that might reverse next year thanks to improved demand, making copper “poised for liftoff,” according to Jefferies analyst Christopher LaFemina. Low copper inventories, high short positions, supply constraints and better demand are creating conditions for the metal to rally, he wrote in a note to clients.

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China has big stake in Bougainville independence – by Alan Boyd (Asia Times – December 12, 2019)

https://www.asiatimes.com/

Papua New Guinea (PNG) is likely to take a hard line on complete independence for Bougainville, despite the breakaway island province’s recent overwhelming vote to establish its own nation.

How the situation is handled will have major implications for regional stability, particularly as China aims to pull Bougainville as a new independent nation into its Belt and Road Initiative (BRI).

PNG Prime Minister James Marape has accepted the referendum result, announced on Wednesday, but committed his government only to developing “a road map that leads to a lasting peace settlement” in consultation with Bougainville authorities.

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As Anti-Mining Protests Escalate, Peru’s Vizcarra Sides With Mining Companies – by Matthew C. DuPée (World Politics Review – December 11, 2019)

https://www.worldpoliticsreview.com/

In mid-October, Peruvian authorities declared a 30-day state of emergency in the copper-rich province of Chumbivilcas, where anti-mining protesters had blocked a stretch of a vital highway called the Southern Runway for almost a month. The blockade, led by indigenous farmers and laborers known as comuneros, caused major disruptions to local commerce and large-scale mining efforts nearby, and nearly forced a halt in operations at Las Bambas, one of Peru’s largest copper mines.

It was just the latest in a series of anti-mining protests by comuneros in Peru this year, which have held up hundreds of millions of dollars in copper exports and forced the Peruvian government into contentious negotiations over indigenous land rights and environmental concerns.

The world’s No. 2 copper producer with reserves estimated at 83 million tons, Peru is highly dependent on copper exports, which generated $12 billion in 2017, more than a quarter of its total exports that year, according to data tabulated by the Observatory of Economic Complexity.

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OPINION: ‘Green’ energy relies on copper-nickel mining – by Jeremy Munson (Minneapolis Star Tribune – December 11, 2019)

http://www.startribune.com/

Jeremy Munson, R-Lake Crystal, is a member of the Minnesota House.

Gov. Tim Walz’s mandates on electric vehicles and his push for 100% “green” energy represent a government takeover of energy, furthering an agenda of science deniers.

Make no mistake, this is an admirable goal. However, I am a lawmaker who embraces both science and reason, and these proposals are rooted in neither. Unlike many of my colleagues on both sides of the aisle, I am not a science denier when it comes to green energy.

Last winter, I approached hundreds of green energy demonstrators in the State Capitol rotunda and spoke to a group carrying signs demanding electric vehicles mandates. I introduced myself and thanked them for supporting the PolyMet copper-nickel mine.

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Crisis Is Rocking Latin America. Peru Is an Island of Uneasy Calm. – by John Quigley (Bloomberg/Yahoo – December 12, 2019)

https://finance.yahoo.com/

(Bloomberg) — Roadblocks of mud, sticks and steel wire bar the entrance to villages lining the northern side of the Rio Tambo, a sign of revolt in the fertile valley cultivated since Inca times.

For almost a decade, the farmers of this green strip wedged between the Andes mountains and the Pacific Ocean have resisted the construction of a copper mine they say will pollute the water course and destroy their livelihoods. Now they feel betrayed by Peru’s president after his government gave final approval to Southern Copper Corp.’s Tia Maria project.

“We can’t allow it,” said councilwoman Zulema Quispe, who was navigating the barricades on the back of a motorcycle. Fields tilled for centuries will be tainted for future generations by the mine to be located just half a mile away, she said. “The president is giving priority to a multinational company and we won’t accept it.”

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Bougainville referendum: region votes overwhelmingly for independence from Papua New Guinea (The Guardian – December 11, 2019)

https://www.theguardian.com/

The autonomous region of Bougainville has voted overwhelmingly in favour of becoming independent from Papua New Guinea, paving the way for the group of islands to become the world’s newest nation.

More than 180,000 people in Bougainville, a collection of islands flung 700km off the coast of Papua New Guinea in the Solomon Sea, participated in a referendum over the last few weeks that has been nearly 20 years in the making. Almost 98% of people (176,928 people) voted for independence and less than 2% (3,043 people) voted to remain as part of Papua New Guinea but with “greater autonomy”. There were 1,096 informal ballots.

Those gathered in Buka to hear the announcement of the results from the chair of the Bougainville Referendum Commission’s chair Bertie Ahern burst into cheers and applause when the result was announced. As the writs were signed by commissioners after the result, the crowd burst into song.

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First Quantum quashes Rio rumour, says Jiangxi is no threat – by Danielle Bochove (Bloomberg News – December 10, 2019)

https://www.bnnbloomberg.ca/

First Quantum Minerals Ltd. says it hasn’t received any takeover approaches — including from Rio Tinto Group — since it last quashed rumors about a play in September.

The company’s president said that while executives were caught off guard by this week’s share purchase by Jiangxi Copper Co., there’s no chance that will lead to a takeover bid either.

The Vancouver-based miner has been in talks with Jiangxi for roughly a year about selling a minority stake in its Zambian operations to the Chinese company, but there’s no deal on the table yet, Clive Newall said Tuesday in a phone interview.

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First Quantum shares jump after China’s Jiangxi Copper takes 18% stake (Reuters U.S. – December 9, 2019)

https://www.reuters.com/

(Reuters) – Shares of Canada’s First Quantum Minerals Ltd (FM.TO) rose as much as 5% to their highest since May on Monday after Jiangxi Copper Co Ltd (600362.SS)(0358.HK) agreed to pay $1.1 billion to become the miner’s largest shareholder.

State-backed Jiangxi Copper, one of China’s biggest copper producers, said on Monday it would buy Cupric Holdings Ltd from Pangaea Investment Management Ltd.

The target held around 18.015% of First Quantum’s issued share capital as of Dec. 9, according to a separate Jiangxi Copper filing to the Hong Kong stock exchange on Tuesday.

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Copper primed for a pop if U.S./China trade war is resolved – by Melanie Burton and Mai Nguyen (Reuters U.S. – December 3, 2019)

https://www.reuters.com/

SINGAPORE (Reuters) – Low inventories across the copper supply chain mean that any resolution to the U.S.-China trade war could trigger a snap rally in prices as consumers rush to restock, market participants said on Tuesday.

Combined stocks of on-warrant copper in London Metal Exchange and Shanghai exchange warehouses have declined 50.5% since mid-August metal buyers have slowed replenishment rates.

Declines in warehouse stocks are often seen as a sign of robust demand in the main industrial demand centres for the metal, used in construction and power industries.

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U.S. copper frenzy grows as Rio Tinto plans $1.5 billion Utah mine expansion – by Ernest Scheyder (Reuters U.S. – December 3, 2019)

https://www.reuters.com/

(Reuters) – Rio Tinto Plc said on Tuesday it would spend $1.5 billion to expand its Kennecott copper mine in Utah, part of a growing trend by miners to invest in strategic mineral projects across the United States.

The move more than doubles the mining industry’s recent investment in U.S. copper projects, as Tesla Inc and other automakers demand more of the red metal for electric vehicle motors and other components.

“We like copper. We like the U.S.,” Rio Chief Executive Jean-Sebastien Jacques said in an interview. “If we had not taken this decision, our position in the U.S. market would be shrinking.”

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Friedland regains control over large chunk of Ivanhoe shares – by Frik Els (Mining.com – December 2, 2019)

https://www.mining.com/

Robert Friedland issued a news release on Monday after the market close under Canada’s so-called early warning financial market requirements that he’s regained control over a large chunk of shares in Ivanhoe Mines.

According to the press release issued from Singapore where Friedland is based, the billionaire financier has “regained direction and control” over 25m common shares that were previously pledged as security for a loan. The shareholding is worth C$84m (US$63m) at today’s ruling price.

According to the press release Friedland now effectively controls 14.4% of Ivanhoe Mines:

“The 25,000,000 common shares constitute 2.1% of the 1,194,039,162 common shares of Ivanhoe Mines currently issued and outstanding.

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Billionaire Says Congo Is Now More Attractive Than Chile for Copper Mines – by Elena Mazneva (Bloomberg News – November 25, 2019)

https://www.bloomberg.com/

Chile’s worst civil unrest in decades means the Democratic Republic of Congo is a more attractive proposition for mining investment, according to billionaire Robert Friedland.

While Chile, the world’s top copper producer, seeks measures to quell the social unrest that exploded last month, the election of President Felix Tshisekedi earlier this year has improved the prospects in Congo, Friedland said at the Mines and Money conference in London on Monday. Ivanhoe Mines Ltd., founded by Friedland, is developing the world’s second-largest copper-mining project in Congo, with production due to start in 2021.

“There is a new sheriff in town,” said Friedland, referring to Tshisekedi. Chile is now a “terrible place to invest in mining, while Congo is a really great place,” he said.

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