As 2020 enters the last month, the reopening of the economy and monetary stimulus measures from banks and governments have caused metal prices to rise. In 2021, multiple world-class newly put into production mines will follow one after another, and the replacement of old and new ones may New production expansions will all impact market demand.
1 Iron Ore: BHP Billiton’s SouthFlank Iron Mine
Recently, SouthFlank project manager Simon Thomas (Simon Thomas) stated that the construction of BHP Billiton’s SouthFlank Iron Mine in Western Australia has completed about 84 % and is expected to start production in mid-2021. The project is expected to continuously produce iron ore for more than 25 years, and the South Flank project will also become one of the largest iron ore hubs in the world. The iron ore produced in the South Flank area will have a grade of 62-63% and will replace the Yangdi mine with an annual production capacity of 80 million tons. After the Yangdi mine produces 56% iron ore, after South Flank is put into operation, it is expected that BHP Billiton will The average grade of iron ore produced in the Bara region increased by 1 percentage point to 62%. Chinese iron ore buyers are paying hefty premiums for high-grade iron ore due to increasingly stringent environmental policies in China's steel industry. The commissioning of SouthFlank iron ore has also become a "sharp weapon" for BHP Billiton to make money.
2 Iron Ore: Rio Tinto’s Koodaideri Iron Ore, Xiangelas and other projects, Hitna New Tryon Phase II
The first phase of Rio Tinto’s Koodaideri Iron Ore Project was completed in Construction began in 2019 and is expected to begin production in the second half of 2021. After completion, the mine's annual production capacity will reach 43 million tons, which will support the production of Pilbara mixed fines, Rio Tinto's flagship iron ore product. West Angelas production expansion and other projects are part of the business of the Lobo River Company, a joint venture between Rio Tinto and Mitsui and Nippon Steel/Sumitomo Metal. The Lobo Valley Joint Venture Capacity Maintenance Project (West Angelas C/D Mine, Massa The first batch of ore from B/C mine and H mine in Luobo Valley is expected to be delivered in 2021. Construction work on the second phase of the Western Turner Syncline project is progressing. Earthworks and concrete work are progressing smoothly. The concrete pouring of the vault walls of the two primary crushers has been completed. The first batch of iron ore is still planned for 2021. deliver. Although Rio Tinto has many new projects, it has less new production capacity. Its new production capacity projects are mainly to replace depleted mines. There are fewer pure new production capacity projects and the marginal increment is limited.
3 Copper Mine: Zijin Mining Kamoa-KaKula Copper Mine
Kamoa-Kakula in Congo (DRC) is the largest copper mine discovered in the world in the past 10 years and the largest in Africa. , the fourth largest untapped high-grade copper mine in the world. As of February 2020, the proven resource reserves of copper metal amounted to 43.69 million tons, with an average grade of 2.53%. Drilling work is continuing in the Kamoa North Rich Mineral Vein and Kamoa Far North District, and there is great potential for further exploration to increase reserves. Currently, the mine is accelerating the underground mining construction of the Kakula mining section. The first-phase design capacity is to process 6 million tons of ore per year, and the annual output is more than 300,000 tons of copper. It is expected to be completed and put into operation by the end of the second quarter of 2021, with an average early processing grade of 6% above. Zijin Mining is the largest shareholder of the Kamoa Copper Mine. The company holds 49.5% of the shares of Kamoa Holdings, a subsidiary of Canada's Ivanhoe Mines. Kamoa Holdings owns 80% of the shares of the Kamoa Copper Mine; it also holds 49.5% of the shares of Kamoa Copper Mine. Hao owns 13.88% of the company’s shares.
4 Copper and gold mine: Zijin Mining Timok copper and gold project
Serbia’s Timok copper and gold mine is one of the top ten high-grade ultra-large copper and gold mines to be developed in the world, divided into upper mines zone and lower mineral zone. As of the end of 2019, the resource reserves in the upper mineral belt were 1.05 million tons of copper metal with an average grade of 3.7%, and 68 tons of gold metal with an average grade of 2.4 g/ton. There are ultra-high-grade ore bodies at the top, and the distribution is relatively concentrated. The upper mining belt is underground mining, with a designed production scale of annual processing capacity of 3.3 million tons, an infrastructure period of 2.5 years, and a total service life of 13 years. It is planned to be completed and put into operation by the end of June 2021. After reaching capacity, the annual output of copper metal will be approximately 79,600 tons, and gold metal will be approximately 2 tons. The inferred resource amount of the lower ore belt is 14.3 million tons of copper metal, with an average grade of 0.86%; the amount of gold metal is 299 tons, with an average grade of 0.18 g/ton. The lower ore zone is in the feasibility study stage. Zijin Mining holds 100% equity in the Timok copper-gold mine and more than 20 mineral rights in Serbia and the Balkans.
5 Copper Mine: Zijin Mining’s Qulong Copper Mine
On June 7 this year, Zijin Mining Chairman Chen Jinghe said that he will unswervingly promote the Qulong Copper Mine to be put into production by the end of 2021. Qulong Copper Mine, a subsidiary of Julong Copper, is the largest copper mine in China. According to the plan, Qulong Copper Mine will implement large-scale open-pit mining and will be constructed in two phases. The investment in the first phase is 14.6 billion yuan. An investment of 7.4 billion yuan has been completed. The plan It will be completed and put into operation at the end of 2021. After completion, the annual output of copper and molybdenum will be 165,000 tons and 6,200 tons of molybdenum. The second phase will be constructed at 300,000 tons/day in the 7th and 8th years after the first phase is put into operation. After completion, the annual output of copper will be 263,000 tons. , producing 13,000 tons of molybdenum.
After the project is completed and put into operation, it will not only accelerate the pace of Zijin Mining's entry into the "club" with an annual output of one million tons of copper, but will also significantly enhance China's copper resource reserves and production. On July 9, 2020, Zijin Mining completed the acquisition of 50.1% equity of Julong Copper through its wholly-owned subsidiary Tibet Zijin Industrial Co., Ltd., with a transaction consideration of 3.883 billion yuan. Zangge Holdings holds 24.9% of the shares, and state-owned enterprises of the Tibet Autonomous Region and Mozhugongka County hold 25%.
6 Copper Mine: BHP Billiton’s Spence Copper Mine Expansion Project in Chile
BHP Billiton’s (BHP) Spence Copper Mine Expansion Project (Spence Growth Option) in northern Chile is expected to be completed in December 2020 It will be put into production by March 2021. Affected by the epidemic, this time has been postponed from July to December this year. But the project's $2.46 billion budget has not been affected. The project will extend the life of the Spence copper mine by more than 50 years. During the first 10 years of operation, it will increase the output of an additional 185,000 tons of copper per year. In the first four years of operation, the annual output of the Spence copper mine can reach 300,000 tons. /p>
7 Lithium Mine: Lijiagou Spodumene Mine
Lijiagou Spodumene Mine is the largest spodumene mine in Asia that has been proven and obtained a mining license. Lijiagou Spodumene Mine The mining area has now explored and identified lithium oxide (Li2O) reserves of 510,000 tons, with an average grade of 1.30%. The 1.05 million tons/year mining and processing project under construction is currently the largest lithium mining and processing project in China with investment, and it is planned to process 1.05 million tons of raw ore annually. tons, with an annual production of 180,000 tons of concentrate. The project is currently under construction and is expected to be put into operation in May 2021.
On July 25, 2019, Chengdu Chuaneng Lithium Energy Fund completed the investment in Lijiagou Lithium Industry (its subsidiary company Sichuan Dexin Mining owns Lijiagou Lithium) through a combination of equity acquisition and capital increase. Mining rights) equity investment, Chengdu Chuaneng Lithium Energy Fund finally realized that it directly held 62.75% of the equity of Energy Investment Lithium Industry, with a total investment amount of 779 million yuan, and Yahua Group held 37.27%. On November 13, Sichuan Energy announced that the company planned to invest 927 million yuan to acquire 62.75% of Sichuan Energy Investment Lithium Industry Co., Ltd. held by Sichuan Energy Lithium Energy Fund.