I thought it would be helpful to read into Transamine (our largest shareholder and also a world leading trader of copper) view of copper market.
I am not sure if readers are aware that the LME's copper has reduced below 2008 stock level and more now.
I encourage readers to go through Transamine monthly publication of the commodities market report and in particular Copper. You can easily understand Transamine's optimism in DML's copper.
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In London, the Copper settlement price in-creased to US$ 7,090.00 a tonne with a backwardation of US$ 35.00 on July 30th, 2014.
Indonesia offered miners a tax concession to end the export dispute that cut mineral exports by a half-billion dollars monthly. Freeport-McMoRan is to become the first to take the deal and restart concentrate ship-ments from its Grasberg copper-gold mine. The concen-trates-export tax is to drop to below 10 percent and fall to zero as smelter construction progresses.
Barrick Gold said it is partnering with Saudi Arabian Mining Co (Ma'aden) to run its Jabal Sayid cop-per asset in the kingdom. The long-delayed mine could begin production in late 2015. State-controlled Ma'aden has agreed to buy the 50-percent interest in the project, some 120 km southeast of Medina, for $210 million.
The Escondida mine in northern Chile pro-duced 272,776 tonnes of copper in the first quarter, down 10.7 percent from 305,563 tonnes a year before, BHP Billiton said. Copper and concentrates production fell 14.4 percent to 197,021 tonnes whilst copper-cathode output was almost level at 75,755 tonnes.
Discovery Metals said its Boseto copper mine in Botswana produced 5,367 tonnes of copper in concen-trate in the second quarter, its best quarter ever. This marked a 25-percent production hike from the previous quarter.
Aditya Birla Minerals received government approval to restart its Nifty copper mine in Western Aus-tralia. The mine was ordered shut after a sinkhole opened in April at the mine in the Great Sandy Desert. Aditya Birla is part of the Indian conglomerate Aditya Birla Group.
Vedanta Resources is weighing the future of its Mt Lyell copper mine in Australia after a rock slide this week prevented the mine from reopening after a 6 month closure due to health and safety issues. The mine yields about 24,000 tonnes of copper a year.
China’s Jiangxi province is to eliminate 287,000 tonnes of outdated copper-smelting capacity this year to cut pollution and boost energy efficiency.
LME copper stocks further decreased from 156,775 tonnes to 147,925 tonnes in July.
