Metal Bulletin reported that non-Chinese sources said at LME Week that Glencore plc’s (LSE:GLEN) decision to halt copper and cobalt production at Katanga Mining Ltd. (TSX:KAT) could mean some cobalt chemical producers shift to using more intermediate feed in the metal’s place.
Copper prices got a much needed boost on Tuesday after Glencore announced a new debt reduction plan that included cutting approximately 400,000 tonnes of copper cathode out of the market.
Bloomberg reported that Glencore’s (LSE:GLEN) decision to suspend production at its copper mines in Zambia and the Democratic Republic of Congo will cut 26 percent of the countries’ copper output. The move is part of broader measures being taken by Glencore to cut costs as weak commodity prices continue.
As part of Glencore’s (LSE:GLEN) recently announced measures to cut costs amidst the current commodity price rout, Metalbulletin (subscription required) noted that the company has suspended cobalt production as a consequence of putting production on hold at its copper mine in the Democratic Republic of Congo.
Last week’s other top gainers were Western Potash, Teranga Gold, Ivanhoe Mines and Lithium Americas.
Cobalt prices have been rising since the end of August and hit an 8-week high on September 13.
Commodity prices have slumped and costs have escalated, squeezing the margins of major mining companies. Falling equities of junior miners have scared investors away along with the capital to keep themselves afloat. Necessity is the mother of invention, however, and many mining companies are learning that the key to survival
What investors need to know about new mining rules in top cobalt producer Democratic Republic of the Congo.
Mining Weekly reported that Katanga Mining will be drawing down a $515.5 million load from its credit facility in order to support the fourth phase of expansion in their copper/cobalt mine in the DRC.
Glencore already owns more than 74 percent of Congolese copper and cobalt miner Katanga. Analysts say the commodities giant is looking to acquire the rest as Katanga plans to raise copper production to 300,000 tonnes a year by 2015.
IBTimes reported that Gecamines says it will not release details of its mining contracts without permission from its partner firms.
Continued market volatility and opportunities for acquisitions were the take-away messages as heavyweight commodity producer and trader Glencore International Plc released its H1 results.
Mining Weekly.com reports that Katanga Mining (TSE:KAT) is on track to complete a capacity expansion at its copper and cobalt complex in the Democratic Republic of Congo by mid-year, and has already begun work on the next phase of growth.
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