VANCOUVER (miningweekly.com) – Europe-focused copper producer Atalaya Mining is on track to ramp up output at its Proyecto Riotinto project, in Andalucía, Spain, aiming to produce between 23 500 t and 27 000 t of the red metal by year-end.
Since declaring commercial production at the brownfield project (which gave global conglomerate Rio Tinto its name) in February, the ramp-up process was progressing according to plan, the company advised Wednesday, despite minor hiccups experienced when expanding project capacity.
The Aim- and TSX-listed miner ramped up copper output by 10% during the second quarter ended June 30, to 4 442 t, compared with 4 048 t in the prior period. This is a significant achievement considering the plant was hampered by temporary shutdowns, owing to a tailings discharge suspension by the Junta de Andalucía, as well as interruptions required to commission the mine’s expansion project.
In the second quarter, ore processed increased by 15% on the first quarter, to 1.3-million tonnes, rising to an annualised rate of 6.8-million tons a year, in line with the ramp-up schedule, which continued in August to 8.3-million tonnes a year.
Atalaya said the final copper concentrate grade was 21.43% in the quarter and recoveries were lower at 80.46%. Recoveries rose back over 84% during July and August, to the expected full-year rate of around 80% of the new flotation circuit.
The average market price of copper for the first half of the year was $2.16/lb, down more than 2% over the prior period, but still higher than the company's realised copper price for the same period of $2.06/lb.
Cash costs for the second quarter were $2.36/lb, compared with $2.31/lb for the first quarter. Costs are expected to fall further this quarter as the plant reaches steady nameplate capacity.
For the second half of the year, Atalaya guided for cash costs of between $2.05/lb and $2.20/lb.
For the six months to June 30, revenue was €22.6-million, while the company recorded a core loss before interest, taxes, depreciation and amortisation of €3.6-million.
Inventories of concentrates in June amounted to €6.2-million and capital expenditure for the half-year was €17.1-million, the company advised.
Atalaya on Monday concluded a $14-million copper concentrate prepayment agreement with commodity trading company Transamine Trading for Proyecto Riotinto.