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Mining industry

Global Mining Industry Update: Key Developments and Market Trends

Strategic Insights

— 2 min read

The global mining industry has been marred by disputes and challenges in recent days, with various developments impacting the supply and demand of key metals such as copper and zinc. In Australia, the government has approved a major expansion of the BHP Billiton-operated Olympic Dam mine, but with over 100 conditions attached. Meanwhile, a dispute between management and miners at the Chinese-owned Chambishi Copper Mine in Zambia was resolved with a 100% pay rise, but not before six days of strike action. In Peru, Compania Minera Antamina SA expects to increase production next year following a large-scale expansion. Russia's copper exports have declined significantly in the first eight months of the year, while South African mining company Exxaro Resources is shutting down its Zincor refinery.

Key Takeaways:

  • The Australian government has approved the expansion of the BHP Billiton-operated Olympic Dam mine in South Australia, but with over 100 stringent conditions.
  • A dispute between management and miners at the Chinese-owned Chambishi Copper Mine in Zambia was resolved with a 100% pay rise, but not before six days of strike action.
  • Compania Minera Antamina SA in Peru expects to increase production next year following a large-scale expansion.
  • Russia's copper exports have declined significantly in the first eight months of the year, with a 73.5% decrease compared to the same period last year.
  • South African mining company Exxaro Resources is shutting down its Zincor refinery in a move to leave the zinc business.
  • Copper prices extended their rebound to a fourth session, driven by optimism about Europe's debt crisis.
  • Base metals on the London Metal Exchange closed firmly higher, as they and the euro took a strong boost from the latest round of talks aimed at resolving the European debt crisis.

Statistics:

  • Over 100 stringent conditions for the expansion of the BHP Billiton-operated Olympic Dam mine
  • 100% pay rise for miners at the Chinese-owned Chambishi Copper Mine in Zambia
  • 73.5% decrease in Russia's copper exports in the first eight months of the year compared to the same period last year
  • Copper prices extended their rebound to a fourth session
  • 83,200 metric tons of copper exported by Russia in the first eight months of the year
  • 13,000 metric tons of additional zinc production expected by Compania Minera Antamina SA in Peru next year
  • 6 days of strike action by miners at the Chinese-owned Chambishi Copper Mine in Zambia

Sources:

  • Sydney Dow Jones Commodities News via Comtex, October 10, 2011
  • London Dow Jones, October 10, 2011
  • Lima Dow Jones, October 10, 2011
  • Moscow Dow Jones, October 10, 2011
  • Johannesburg Dow Jones, October 10, 2011
  • New York Dow Jones, October 10, 2011
  • London Dow Jones, October 10, 2011
  • Shanghai Dow Jones, October 10, 2011

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