Reuters reported that commodity trader, Trafigura, has agreed to provide financing for the Oyu Tolgoi mine in exchange for a long-term deal to buy the mine’s output. So far, the amount of output being purchased has not been disclosed.
According to the Reuters report:
Rio Tinto (RIO.L)(RIO.AX), majority owner and operator of Oyu Tolgoi, one of the world’s largest copper and gold mines, has spent months wrangling with the Mongolian government about plans to expand from an open pit into an underground operation.
According to the metals trader, the global copper market looks to be broadly balanced next year due to low inventories and recovering global grow, which it expects to offset stronger mine output.
We don’t expect prices to rise markedly, but on the other hand, with concentrates trading at close to cost levels for some producing areas, a collapse in prices is also unlikely.