MMG Ltd., the Chinese-owned copper producer, is considering whether to invest in more expensive methods of mining the metal when existing oxide resources are depleted. It’s grappling with the same quandary facing units of Glencore Plc and Eurasian Resources Group Sarl, which have either downsized or suspended activities at copper-cobalt mines in the central African nation as they challenge the new mining code.
At MMG’s Kinsevere project, reserves of easier-to-refine oxide ores are being run down and the project’s owners are studying the viability of building processing facilities to exploit their remaining sulfide deposits — a more expensive exercise. The mine, along with Glencore’s Mutanda Mining and ERG’s Boss Mining, is located in the Katangan copper-belt in southeastern Congo.Oxide operations at Kinsevere, which produced 80,000 tons of copper last year, are scheduled to last until 2024.
MMG has been studying the development of Kinsevere’s sulfide resources since well before the code was revised, but aspects of the legislation “have the potential to impact current and future investment decisions,” according to Atell. The reforms have reduced “the probability of approving the development of new facilities to treat the sulfide reserves” at Mutanda, Glencore said in its 2018 results report.
All three projects produce copper, while Mutanda and Boss also mine cobalt, a key ingredient in rechargeable batteries used in electric vehicles. The Glencore subsidiary was Congo’s largest source of both metals last year, exporting 199,000 tons of copper and 27,000 tons of cobalt.
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