Quadra Mining China Venture
Quadra Mining (TSE:QUA) shares soared by almost six percent as they agreed to a deal with the largest utility company in China - State Grid International Development - to develop the Sierra Gorda mine in Chile.
The Sierra Gorda project is a giant copper mine which will take about $2 billion to develop.
The Franke mine is also part of the deal. State Grid International Development paid $151.6 million for the 50 percent stake in the venture.
Quadra Mining China Venture
Showing posts with label Chile Copper. Show all posts
Showing posts with label Chile Copper. Show all posts
Monday, March 8, 2010
Tuesday, March 2, 2010
Teck Resources (NYSE:TCK) Rises on Copper Concerns
Teck Resources Chile Copper Mines
Teck Resources (NYSE:TCK) had a nice gain of 3.2 percent as concerns over Chile copper drove up mining stocks around the world.
The good news is, depending on which side you're looking at it from, is copper mines in Chile were largely unaffected by the earthquake, and other than some temporary electric outages, should be operating at full capacity.
Now the question is whether other infrastructure in the country like roads are still able to transport the copper to its destinations. It seems there is little damage at this time to highways in the country, and so that shouldn't have a long-term effect either.
Other than some short-term problems, copper in Chile should be back online fairly soon, and abundant global inventories make it a rather mute point if it isn't a major disruption in copper supply, which at this time all indications are it isn't.
Teck Resources Chile Copper Mines
Teck Resources (NYSE:TCK) had a nice gain of 3.2 percent as concerns over Chile copper drove up mining stocks around the world.
The good news is, depending on which side you're looking at it from, is copper mines in Chile were largely unaffected by the earthquake, and other than some temporary electric outages, should be operating at full capacity.
Now the question is whether other infrastructure in the country like roads are still able to transport the copper to its destinations. It seems there is little damage at this time to highways in the country, and so that shouldn't have a long-term effect either.
Other than some short-term problems, copper in Chile should be back online fairly soon, and abundant global inventories make it a rather mute point if it isn't a major disruption in copper supply, which at this time all indications are it isn't.
Teck Resources Chile Copper Mines
Monday, April 28, 2008
How Will Copper Respond to Rising Chile Energy Prices?
The top copper-producing country in the world is Chile by far, accounting for about 40 percent of all copper produced in the world.
Over the last three years in the country, electricity has risen by close to 400 percent; from 3.5 cents a kilowatt-hour to 35 cents a kilowatt-hour. That's like bread increasing from $2 a loaf to $20 a loaf.
The primary reason is the deal Chile made with Argentina to diversify how it generated electricity. The choice of piping in natural gas from Argentina was made, and in a short year-and-a-half, it became a disaster as Argentina broke their production contracts with Chile, choosing to redirect it to their own market.
As a result, Chile switched over to diesel, basically tripling the cost of generating electricity. A severe drought in the country has now made them more reliant on expensive diesel, increasing energy costs even more (less hydroelectric power).
The bottom line is it's having a strong impact on the copper market, as the cost of getting it out of the ground is increasing. That, along with China's continuous demand for copper, makes it look like it may go up in price for some time to come. It's definitely worth watching closely with these factors in mind.
From December 2007, the price has increased by 33 percent, standing at $3.95 a pound as of this writing. It could go much higher.
Over the last three years in the country, electricity has risen by close to 400 percent; from 3.5 cents a kilowatt-hour to 35 cents a kilowatt-hour. That's like bread increasing from $2 a loaf to $20 a loaf.
The primary reason is the deal Chile made with Argentina to diversify how it generated electricity. The choice of piping in natural gas from Argentina was made, and in a short year-and-a-half, it became a disaster as Argentina broke their production contracts with Chile, choosing to redirect it to their own market.
As a result, Chile switched over to diesel, basically tripling the cost of generating electricity. A severe drought in the country has now made them more reliant on expensive diesel, increasing energy costs even more (less hydroelectric power).
The bottom line is it's having a strong impact on the copper market, as the cost of getting it out of the ground is increasing. That, along with China's continuous demand for copper, makes it look like it may go up in price for some time to come. It's definitely worth watching closely with these factors in mind.
From December 2007, the price has increased by 33 percent, standing at $3.95 a pound as of this writing. It could go much higher.
Sunday, April 20, 2008
Chile Copper Strikes Could Cause Prices to Soar
In a strike over pay and benefits, workers in Chile copper mines have created the potential for price increases as global supplies could come under pressure.
Along with the shutdown of Codelco's El Teniente mine, the state also shut down the Salvador and Andina mines over the strike.
The largest underground copper mine in the world, El Teniente, has also been blocked by hostile miners. Chile produces about 40 percent of copper globally.
The copper production in Chile has already been hurt by electric shortages as a nationwide drought has created shortages in hydro-electric power generators, as water levels remain low.
Copper is expected to continue to grow at an annual rate of 3.7 percent through the next ten years, as demaand continues to increase. That would bring consumtion to 27 million tons.
With the slowing housing market in the U.S., China has now become the No. 1 consumer of copper in the world.
Cooper prices have soared by 28 percent so far in 2008, with projections spot copper could end the year at $4.10 a pound, or $9,000 a ton. In 2009, projections are it could reach $10,000 a ton.
Along with the shutdown of Codelco's El Teniente mine, the state also shut down the Salvador and Andina mines over the strike.
The largest underground copper mine in the world, El Teniente, has also been blocked by hostile miners. Chile produces about 40 percent of copper globally.
The copper production in Chile has already been hurt by electric shortages as a nationwide drought has created shortages in hydro-electric power generators, as water levels remain low.
Copper is expected to continue to grow at an annual rate of 3.7 percent through the next ten years, as demaand continues to increase. That would bring consumtion to 27 million tons.
With the slowing housing market in the U.S., China has now become the No. 1 consumer of copper in the world.
Cooper prices have soared by 28 percent so far in 2008, with projections spot copper could end the year at $4.10 a pound, or $9,000 a ton. In 2009, projections are it could reach $10,000 a ton.
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