https://www.miningweekly.com

Low prices prompt Metallum to halt mining at Chile project

15th September 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Copper developer Metallum has been forced to halt mining operations and stand down its production staff at the El Roble copper project, in Chile, as commodity prices continue to decline.

The ASX-listed junior on Tuesday said the decision to halt mining operations at El Roble was also taken in the face of a dramatic price decrease of the Enami tariff for delivered ore, as well as the anticipated removal of the copper price support mechanism by the Chilean government.

The Enami benchmark price for oxide copper has been reduced from $73.82 in June, to $49.66 by September. In addition, the realised value, as a percentage of contained metal, has also reduced from 51% in June to 37% in September, Metallum said.

Under the current Enami price structuring, mining at El Roble had become uneconomic, and had resulted in Metallum moving to put the mine into care and maintenance.

Metallum told shareholders that while a timeframe could not be provided on when the company would be able to restart operations, the miner was looking to source alternative processing options for the El Roble copper ore and was currently in negotiations with private copper ore processing plants within trucking distance of the mine.

Further, the company was negotiating the restructure of its option agreement over certain concessions at El Roble to better align its option payment commitments with possible production from the concessions.

The El Roble project comprises the San Sebastian, Viuda and Paraguay underground mines.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
SafeQuip
SafeQuip

SafeQuip is a leading distributor and manufacturer of fire safety solutions, offering a comprehensive range of products designed to meet all...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.048 0.741s - 110pq - 2rq
Subscribe Now