copper, page-19

Looks like both of Cudecos rail spur partners are not interested in AOH,s 1.5mt of inground copper ? MMG require minimum 50000t p/a apaprently


MMG Seeks South American Partners as It Forecasts Copper Advance By Soraya Permatasari - Feb 1, 2013 3:50 AM ET

MMG Ltd. (1208), which has set aside $4 billion for acquisitions, is seeking partnerships with South American copper miners as it forecasts the commodity’s price to climb this year.

The listed unit of China’s biggest metals trader is looking to purchase stakes, provide technical support or offer financing, Chief Executive Officer Andrew Michelmore said yesterday, without disclosing any target. The Hong Kong-based company completed the acquisition of African copper producer Anvil Mining Ltd. for $1.3 billion in March last year.

“You’ve got to go where the minerals are and the minerals are there in Africa and South America,” he said in a phone interview from Melbourne. “One of the things we have to look at is what we can afford to do with our cash flow and how big a bite we can take.”

Copper remains an attractive investment amid strong demand and tight supply, which will ensure prices stay in a range of $7,500 to $8,500 a metric ton this year, Michelmore said. Inmet Mining Corp. (IMN) said Jan. 23 the sale of a stake in the Cobre Panama copper mine is among “many” options being considered by the Toronto-based company as it fends off a C$5.1 billion ($5.1 billion) hostile bid from First Quantum Minerals Ltd. (FM)

Michelmore declined to say if Cobre Panama is on his list. Finding a project with the right value is a challenge in South America because most mines have lower grades, making it more costly to produce the metal.

MMG isn’t interested in projects with less than 50,000 tons of annual output, he said.

Copper, which rose 4.4 percent in 2012, has climbed 3.2 percent this year. It traded at $8,185 a metric ton as of 4:45 p.m. on the London Metal Exchange.
“I’m still quite positive about copper,” Michelmore said. “Demand for copper is still quite solid and supply has been the issue.”

MMG, a unit of China Minmetals Corp., is also looking to invest more in nickel sulphide and has exploration plans in Africa, Canada and the U.S., Michelmore said.

http://www.bloomberg.com/news/2013-01-31/mmg-seeks-south-american-partners-as-it-forecasts-copper-advance.html