London-listed Atalaya Mining has lowered its production guidance for the full year to between 45 000 and 50 000 t of copper, compared with the previously guided 51 000 t to 53 000 t.

It says this was done to reflect the performance of the first half of this year.

The company, nevertheless, says it expects to achieve higher grades, as well as a strong plant performance, in the second half of the year.

Reflecting on its performance for the second quarter, Atalaya reports that ore mined at its Proyecto Riotinto operation, in Spain, was 3.8-million tonnes, compared with the 3.7-million tonnes mined in the first quarter of the year.

Waste mined was 7.5-million tonnes in the second quarter, compared with 5.5-million tonnes in the first quarter. In addition, waste stripping activities continued at the San Dionisio area.

The plant processed 4.1-million tonnes of ore in the second quarter, compared with 3.7-million tonnes in the first quarter, with plant performance above the 15-million-tonne-a-year nameplate capacity.

Copper grade was 0.33% in the second quarter, compared with 0.34% in the first quarter, as a result of pit sequencing. Improved grades are expected in the second half of this year as mining returns to the bottom of the Cerro Colorado pit.

Copper recovery was 85.77% in the second quarter, compared with 84.74% in the first quarter, which the company says was consistent with budget, despite lower grades.

Additionally, copper production was 11 583 t in the second quarter, compared with 10 666 t in the first quarter, mainly owing to stronger plant throughput.

On-site copper concentrate inventories at the end of the second quarter were about 8 749 t. Copper contained in concentrates sold was 11 397 t in the second quarter.

“During the quarter, our production was affected by grades that were lower than expectation and, as a result, we have adjusted our full-year production guidance.

“While this is disappointing, we anticipate improved grades and strong plant performance in the second half. We also continue to make progress at San Dionisio, which is expected to deliver higher grade material in the coming years,” says CEO Alberto Lavandeira.

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Meanwhile, Atalaya says final construction, commissioning and ramp-up activities continue at the E-LIX Phase I plant. It notes that the successful leaching of copper and zinc concentrates has resulted in the production of zinc and copper precipitates and further progress is expected during the second half of this year.

Once fully operational, the E-LIX plant is expected to produce high-purity copper or zinc metals on site, allowing the company to potentially achieve higher metal recoveries from complex polymetallic ores, lower transportation and concentrate treatment charges and a reduced carbon footprint.

Further, start-up of the 50 MW solar plant is still scheduled for later this year.

The company says it is working closely with its contractor in order to avoid further delays in the project’s schedule. It explains that market electricity prices this year have been below long-term averages in Spain.

Once fully operational, the 50 MW solar plant is expected to provide about 22% of Riotinto's current electricity needs.

Together, the 50 MW solar plant and electricity procured under a ten-year power purchase agreement will provide over 50% of the company's current electricity requirements at a rate well below historical prices in Spain.