Miner-backed study calculates 'sustainable' Eskom price hike at 25%

South Africa's State-owned power utility Eskom could lop a further ten percentage points annually off its application for tariff increases of 35% a year between April 1, 2010, and March 31, 2013, and still emerge as a sustainable organisation able to fund its operations and its capital programmes, new research by consultancy Genesis Analytics asserts.

The analysis, which has been completed on behalf of several mining and industrial clients, including the Chemical and Allied Industries Association and AngloGold Ashanti, would be presented to the National Energy Regulator of South Africa (Nersa), which is scheduled to host public hearings into Eskom's tariff application between January 11 and January 22.

Genesis Analytics chairman Stephan Malherbe told Mining Weekly Online on Friday that the outcome of a 25% a year price path, which could be "frontloaded if necessary", would be an electricity price of 62c/kWh, rather than the 81c/kWh (by March 2013) outlined by Eskom. Nevertheless, Eskom would remain "sustainable" and would also be earning an acceptable rate of return by the end of the period.

However, the research paper, which has not been distributed publically, was also premised on a far greater role for independent power producers and their balance sheets in the domestic and imported power mix.

Eskom would need to find ways to close what would be a R30-billion to R40-billion funding gap that could not be covered by shareholder injections and/or loan capital raised during the three-year period. This could be achieved by increasing the stake on offer to private investors in Eskom's R142-billion Kusile power station from 30%, to relieve further funding pressure and to make the acquisition more attractive to private investors, many of which would generally only be keen on taking majority interests in such ventures. The study also moots a ‘development bond', which would seek to tap South Africa's relatively deep pension-fund resources poll as one method of closing the gap.

BEST PRACTICE

Senior researcher Anthony Felet, an Australian national with extensive regulatory experience in the UK, explained that the key difference between Eskom's calculations and those presented in the Genesis Analytics study, related to assumptions regarding primary energy and operating costs, as well as the methodology used to calculate the utility's return of assets.

Felet described Eskom's expectations of operational and capital costs escalations as "generous" and well above the outlook for producer price inflation. While the utility's use of the "subjective" modern equivalent asset valuation model, rather than the more commonly used indexed historical cost approach to determine a fair rate of return, was, in his view, a deviation from "best practice".

"Because it costs a lot more to replace assets now than what they cost originally, the result is a far higher tariff than would have been the case otherwise. This essentially results in a free lunch to Eskom," Felet explained in an interview.

When Genesis Analytics applied the index historical cost approach a more modest tariff figure emerged, as did far lower depreciation figures, owing to the lower asset values employed.

ACCEPTABLE RETURNS

Eskom, however, believes that the index historical costs model yielded rates of return that were below long-term "acceptable levels".

The utility has asserted that its proposed percentage rates of return over the three-year period should reflect a partial migration towards a percentage rate of return which reflects Eskom's true pre-tax real weighted average cost of capital, as part of the equation to achieving cost reflective pricing within five years as required by South Africa's electricity pricing policy (EPP).

In its bid to "smooth" the increases, Eskom has incorporated a "phased approach" to the achievement of cost reflectivity, which Eskom has argued would mean that the medium- to long-term benchmark rate of return would not be fully recovered during the MYPD2 period - the utility calculates that the average real pretax return on assets will be 4,1%, as opposed to its weighted average cost of capital of 10,3%.

While it was willing to accept a lower return during the three-year period, Eskom argued that the regulatory model needed to move in a way that ensures eventual alignment with the EPP.

The utility also argued that, while its shareholder was unlikely to extract profits in the form of dividends during the tariff-review period, a sustainable return was still required to ensure capital for further expansions. In other words, it would argue that a return on equity provides the capability for a business to reinvest in the industry by providing the nondebt capital for expansion of the assets.

Further, the return also had a direct bearing on the ability of Eskom to borrow funds, as lenders require a sound earnings profile that demonstrates the ability to repay these funds' principle and interest in uncertain economic and commercial environments.

Eskom has indicated that it will tap both domestic and capital markets at a rate of around R47-billion a year between 2010 and 2013, and that the higher anticipated cost of such borrowings also had to be factored into its benchmark rate of return.

Eskom has explained that its submission to Nersa shows that funding is not a substitute for payment, and that, despite its efforts to ensure smoothing, the consumer would eventually have to pay, in line with the prescripts of the EPP.

Nevertheless, there is likely to be much haggling over the percentage return on assets required, with both business and labour indicating recently that they are unhappy with the proposed framework.

PRICES HAVE TO RISE

For his part, Malherbe stressed that there was no disputing the fact that Eskom's tariff needed to rise, noting that, at 25% a year, South Africans would still experience a doubling in nominal tariffs over the period.

"No doubt our figures will not be as low as some people would like, but we believe the outcome is a sustainable, effective, well-resourced power sector in South Africa," he added.

By contrast, Eskom's approach, which sought to "pre-fund" its capital programmes over a short horizon "off the backs of consumers", would not only have serious economic consequences, but could even lead to unintended windfall profits.

"We believe we have applied best regulatory pricing practices to arrive at a result that is sustainable and equitable," Malherbe asserted, while stressing that the study's outcomes should be seen as part of adding to the national debate rather than the final word or solution.

Public hearings into Eskom's application for a 35% a year hike in its tariffs for the three-year period from April 1, 2010, to March 31, 2013, will kick off in Mpumalanga on January 11, before moving to all of South Africa's eight other provinces and culminating on January 21 and 22 at hearings scheduled for Gauteng.

Nersa would make known its final determination by February 24, 2010, with the approved increases then scheduled to come into force on April 1, 2010, the start of Eskom's financial year.

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The year kicked off with a two-day strike at the world's second largest copper mine, state-run Codelco's Chuquicamata in northern Chile, in what has become yet another recent example of the growing power of mining unions in the nation, the world's largest red metal producer.
Also this week, Xstrata put an end to a strike that started in late December at its Altonorte copper and molybdenum smelter in northern Chile.
Along with a 42-day work stoppage at BHP Billiton's Spence mine that started in October, that makes three strikes at major operations in Chile's copper industry last year.
Therefore when contract renewal season comes around in roughly three more years, the likelihood of more stoppages is considerably high.
In the case of Chuquicamata, workers were demanding roughly the same bonus (about US$25,000) paid by BHP Billiton to employees at its 57.5%-owned Escondida mine in an amicable settlement last year, which set a new precedent for Chilean mining.
But since Chuquicamata is state-owned and its productivity per worker is considerably lower than that at Escondida, the world's largest copper mine, the Codelco strikers came in for some heavy criticism.
And as Codelco's profits go to Chile's treasury and Chuquicamata's workers already had far higher salaries than the average Chilean worker, especially state employees, their stoppage was not received well.
Even President Michelle Bachelet made a public statement disapproving of the strike.
Therefore the stoppage only lasted 48 hours, but workers still ended up with a 4% pay raise in addition to an inflation adjustment and a bonus of about US$24,000, not much less than the 5% raise and bonus granted at Escondida.
Spence's workers also tried to obtain the same benefits as Escondida in their strike but ultimately attained terms less favorable.
As for how much production was lost at Chuquicamata, to give an idea, in December the workers held an illegal 24-hour strike with no prior notice as a show of force. During that time the mine lost 1,820t of copper output.
Chuquicamata is part of the Codelco Norte branch, which produced 613,000t of copper in the first nine months of 2009 out of the company's total 1.21Mt. Codelco is the world's biggest copper miner.
Also this week in Mining:
Brazil
- Vale is in the process of deciding whether to restart its Vale Inco subsidiary's Voisey's Bay nickel mine in Canada or shut it down after several months of strikes.
- Magellan Minerals began a preliminary economic assessment (PEA) on its Coringa gold project.
Chile
- Goldcorp entered into a binding agreement with New Gold for the latter to exercise its right of first refusal on a 70% stake in the El Morro copper project held by Xstrata Copper, a branch of multinational group Xstrata, and then pass the share on to Goldcorp.
Goldcorp agreed to advance US$463mn to New Gold in order to acquire the stake once the right of first refusal is carried out. Goldcorp will then pay New Gold another US$50mn in cash upon acquiring its Chilean subsidiary, the holder of the El Morro stake.
New Gold already owns the remaining 30% of the project and intends to keep it following the transaction, according to Goldcorp.
The deal appears to be in conflict with Barrick Gold's agreement made in October to purchase the 70% from Xstrata for US$465mn in cash.
Located in Chile's northern region III, El Morro has 8.3Moz gold and 6.3Blb (2.86Mt) of copper in measured and indicated resources.
Colombia
- Coalcorp Mining agreed to sell its La Francia coal mine to a subsidiary of Goldman Sachs in a deal worth some US$200mn.
Ecuador
- Ecuador has created a national mining company, dubbed Enami EP, to manage this "strategic" sector.
Mexico
- Yale Resources acquired the Guadalupe gold-silver property in Zacatecas state some 4km north of Fresnillo city.
Guadalupe spans 283ha and contains two historic mines, Santa Rita and San Antonio. At present the property is host to a small-scale mining operation that processes ore at a rate of about 3-4t/d.
Nicaragua
- B2Gold poured the first gold-silver doré at its Orosi mine. Orosi is expected to produce 80,000-90,000oz/y gold with average cash costs of US$465/oz over its initial seven-year life.
Peru
- The board of copper-zinc producer Minera Antamina approved a US$1.29bn expansion project.
Output will grow by some 30% and the mine life is set to be extended six years to 2029, thanks to a 77% expansion of ore reserves to 745Mt completed in 2008.
Uruguay
- Uruguay Mineral Exploration closed its purchase of Fortune Valley Resources worth roughly US$7.5mn.
RESULTS & FIGURES
Gold Fields reduced by 2.8% its corporate-wide production guidance for the second quarter of its 2010 fiscal year ending December 31 to 900,000oz due to stoppages at its operations in South Africa as a result of seismic activity.
In Latin America, Gold Fields owns the Cerro Corona gold mine in Peru.
Alamos Gold produced 48,000oz of gold at its Mulatos mine in Mexico in the fourth quarter of 2009 at costs of US$335/oz, up from 39,347oz year-on-year. In all of 2009 the company exceeded its production forecast and put out 178,500oz at US$335/oz.
Peru's energy and mines ministry (MEM) approved 255 environmental studies for mining projects during 2009, more than in previous years.
Brazilian iron ore exports by volume reached 24.2Mt in December, up 10.4% compared to November and 76% higher than the 13.8Mt recorded in December 2008, the country's foreign trade ministry reported.
And finally back to Chile, which churned out 477,266t of copper in November, 8.2% more than in the same month of 2008, national statistics bureau INE reported.

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Antamina approves US$1.3bn expansion - Peru

The board of Peruvian copper-zinc producer Minera Antamina has approved a US$1.29bn expansion project, the mine's owners announced Tuesday.

Anglo-Australian BHP Billiton (NYSE: BHP), Anglo-Swiss Xstrata (LSE: XTA) and Canada's Teck (TSX: TCK) separately reported the plan to go ahead with a 38% increase in the processing rate to 130,000t/d.

The multinationals own 33.75%, 33.75% and 22.5%, respectively of Antamina. The remaining 10% is held by Japan's Mitsubishi. Each of the four partners has approved its respective share of capital expenditure, said BHP Billiton.

Output will grow by some 30% and the mine life is set to be extended six years to 2029, thanks to a 77% expansion of ore reserves to 745Mt completed in 2008.

Minera Antamina will borrow money and use cash flow to complete the project, said Teck.

Construction is due to start during the first quarter of 2010, with first output slated for late 2011 and commissioning for late 2012.

Works include expanding the concentrator plant, building a new 55km transmission line, enhancing water management and tailings storage systems and acquiring new mining equipment.

Antamina produced 74,600t of copper in 3Q09, down 14.4% year-on-year due to lower grades and recoveries. Zinc output rose by the same percentage to 109,600t and molybdenum production was more than halved at 1.5Mlb (680t).

The mine is in Peru's Ancash region.

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Phoenix-based Southern Copper (NYSE: PCU), in a bid to overcome the main obstacle to developing the Tía María project in Peru, is planning a January meeting with residents of Cocachacra to persuade them to accept the mine after a previous effort was suspended in September and locals voted to reject the project at the end of that month, fearing it could impact water supplies.

Guido Bocchio, Southern's manager of legal issues and natural resources, said in an interview with BNamericas that the company - despite deputy mining minister Fernando Gala's request to provide alternatives - will insist on its plan to use the subsoil waters of the Tambo river.

Bocchio said studies have shown that the Tambo alternative is not only the safest for the environment but also the most cost effective means of providing the water to develop the deposit, located in Arequipa region and estimated to hold 638Mt grading 0.39% copper. The subsoil water from the Tambo river provides over 225l/s and will be enough for the mine and not affect the river or farmers, he claimed.

Other alternatives evaluated for the mine have been the use of surface river waters by building a dam - something flatly rejected by local farmers - and the pumping of water from the ocean, which would be too costly as the deposit is located at high altitudes and far from the sea, according to Bocchio.

The approval of farmers who live near the mine site is a requirement for the government to approve the environmental impact study (EIS). According to a vote held in late September that organizers called a "referendum," the majority of locals are against the project. Southern Copper rejected the vote, claiming it lacked legality.

Bocchio said that "groups opposed to mining with leftist ideology" were the ones responsible for creating the "wrong climate" for its planned September hearing with local residents and farmers so it had to suspend the meeting, a legal requirement, at the last minute. He said the company hopes the right climate for the talks will exist by January.

"We are estimating a new hearing for January," he said.

If the January meeting is successful, approval of the EIA could come in the first quarter of next year and the project could be completed on schedule by 2011, as announced by the company in recent weeks.

Southern Copper earlier this year restarted the project after it was put on hold following plummeting copper prices in late 2008. The project was initially planned to be finished by 2010 for an estimated US$1.2bn, which was later reduced to less than US$1bn, and is expected to produce 120,000t/y of copper cathodes.

Bocchio said the company will be innovative in dealing with the community by "one, seeking more direct talks with the community; two, moving from the technical to the simple explanation; and three, creating special commission teams."

Tía María, along with Chinalco's Toromocho and Zijin's Río Blanco, is one of the biggest new copper mining projects in Peru.

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Executive branch approves extension of sales tax exemptions for explorers - Peru

Peru's executive branch of government has signed a law previously approved by congress to extend through 2012 sales tax reimbursements for mining companies in the exploration phase, state news agency Andina reported.

The law also exempts explorers from a certain municipal tax, and applies to companies exploring for hydrocarbons.

The energy and mines ministry, in coordination with the economics and finance ministry, now has 30 business days to update the list of goods and services that qualify for the tax exemption, the report said.

Peru snagged 5% of global mining exploration spending in 2008, which reached US$13.2bn, according to Canada's Metals Economics Group (MEG). While MEG's latest forecasts say total global exploration budgets were expected to have fallen 42% to US$8.4bn in 2009, the Fraser Institute last year ranked Peru at number 11 on its list of countries with mining potential.

 

 

 

 

Peru is a major producer of silver, gold, zinc and other metals.

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Toronto-based Chariot Resources (TSX: CHD) has added 136 drill holes completed in 2008 to the database at its Mina Justa copper project in Peru as part of ongoing optimization studies on the project.

The drill holes were not contemplated in the 2008 resource estimate that formed the base of last year's feasibility study, the company said in a statement.

The holes include 13 extensions to holes drilled in 2007 and 15 extensions to holes drilled in 2008.

"The updating of our data base has highlighted the upside potential at our Mina Justa project," said CEO Ulli Rath.

The newly included holes were drilled at the Copper 40, MA 67, Northern Oxide and Western Extension Gap areas, all outside the planned open pit.

Chariot has said it is looking for a buyer to take over the company, and reported in December that it had finished an optimized mine plan to increase life-of-mine production.

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Apoquindo starts 40,000m drill program at Zafranal - Peru

Apoquindo Minerals (TSX-V, Lima: AQM) reported its Peruvian subsidiary Minera KoriTambo has received final exploration permits for 2010 drilling at the Zafranal copper-gold project from Peru's energy and mines ministry and has begun work.

Zafranal is earmarked for 40,000m of drilling in 2010, including confirmation of historic drill holes by Teck (TSX: TCK) at the Zafranal main zone, infill and step-out drilling at the main zone and exploratory drilling on satellite targets.

A resource estimate on the Zafranal main zone is targeted for completion in the third quarter of 2010, Apoquindo said in a statement.

Previous work by Teck subsidiary Teck Cominco Perú identified the core area of mineralization on the property, the company said.

"Apoquindo's drill program will focus on confirming the thickness and grade of the enriched supergene layer, expanding the deposit along strike and testing the potential at depth for primary mineralization," said Apoquindo president Bruce Turner.

Work by Teck totaled 11,805m in 36 holes, with results including 70m grading 1.08% copper and 0.25g/t gold, 77m of 1.80% copper and 0.21g/t gold, and 110m grading 1.22% copper.

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IN BRIEF Gold Fields trims output guidance by 2.8% due to seismic activity - Peru

Gold Fields (NYSE: GFI) has reduced by 2.8% its corporate-wide production guidance for the second quarter of its 2010 fiscal year ending December 31 to 900,000oz due to stoppages at its operations in South Africa as a result of seismic activity, the company reported in a statement.

In Latin America, Gold Fields owns the Cerro Corona gold mine in Peru.

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SNMPE to consider expelling Doe Run over La Oroya- Peru

Peru's national mining, oil and energy society SNMPE will evaluate at the end of the month

the permanent exclusion of Doe Run Perú from the trade association, state news agency Andina reported.

SNMPE cites as the motive Doe Run's noncompliance with its environmental obligations at the La Oroya smelter in Junín and failing to bring La Oroya back into production as promised.

The company reportedly will not be able to bring the smelter online during January, the new deadline for restarting production that was approved by congress and signed into law in October.

"The board [of SNMPE] has agreed to maintain the suspension of Doe Run [as a member] until January 31, and then evaluate what is happening and at that time we will call on them to inform us of what they are doing and what they are going to do," SNMPE president Hans Flury was quoted as saying by Andina.

SNMPE suspended Doe Run's membership rights in July.

Doe Run stopped operations at La Oroya last year due largely to financial difficulties. The extension gave the company 10 more months to obtain the necessary financing to finish construction of a sulfuric acid plant and modifications to La Oroya's copper circuit, plus two months to renegotiate contracts with workers, 12 months to finish the works and six months for commissioning.

The environmental works are part of the contract Doe Run signed with the Peruvian government in 1997 when the smelter was privatized.

The nearly century-old smelter produces 11 different metals and is known for having caused serious lead contamination around the town of La Oroya.

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HARARE  - Zimbabwe's government on Thursday halted the sale of diamonds from its controversial Marange fields, saying the process would only go ahead under international supervision.

State media had earlier quoted the chairman of a joint venture firm set up by the government and two South African companies as saying diamond auctions would start on Thursday, but a senior government official said the announcement was premature.

"There was no auction today, no sale of diamonds," Thankful Musukutwa, permanent secretary in the mines ministry, told reporters.

"The government observes and is committed to the administrative decision of the Kimberley Process Certification Scheme ... that all shipments from all production sites in the Marange area will be subject to examination and certification by a KPCS monitor."

Musukutwa said the government and the KPCS, which regulates the global diamond trade, were in the process of engaging a monitor to oversee the diamond sales.

"There will be no sales or exports of Marange diamonds until all government regulations and KPCS stipulations have been met."

Rights groups accuse security forces of committing widespread abuses to stop thousands of illegal diamond miners who descended upon the poorly secured fields in the eastern part of the country and have been pushing for a ban on Zimbabwean diamonds.

ZIMBABWE TOLD TO IMPROVE CONDITIONS

The KPCS voted last November to allow Zimbabwe to continue mining and trading in diamonds, but gave it six months to improve conditions in Marange.

The government, through mining arm Zimbabwe Mining Development Corporation, has partnered little-known South African companies, Core Mining and Grandwell Holdings, to set up Mbada Diamonds, a joint venture firm which is mining diamonds in Marange.

Mbada Diamonds chairman Robert Mhlanga told the state-controlled Herald newspaper that about 300 000 carats worth of diamonds would be auctioned in Harare on Thursday.

International diamond buyers from the Americas, Europe Asia and Africa would take part in the auction, he said.

The Zimbabwe government would earn up to 80 percent of the proceeds from the diamond sales, the Herald reported.

The Marange diamond fields are at the centre of a legal dispute between the Zimbabwe government and London-listed African Consolidated Resources, whose claims were cancelled by the authorities in 2006.

The government has ignored a High Court order, issued last September, to restore the Marange claims to ACR.

Other players in Zimbabwe's diamond mining industry are Rio Tinto, whose Murowa is the country's largest diamond mine, and the privately run River Ranch mine.

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Stillwater sees 'robust' outlook for palladium, other PGMs

TORONTO – US platinum-group-metals (PGM) miner Stillwater Mining expects to benefit from stronger PGM prices overall, and in particular from a narrowing of the gap between platinum and palladium prices, CEO Frank McAllister said this week.
Prices for palladium, platinum and rhodium have all moved strongly ahead since the start of the new year, continuing a steady recovery that began in early 2009, Stillwater said.
Palladium was quoted at $425/oz on Wednesday, well above the low of $164/oz reached in the fourth quarter of 2008.
"Given the severity of the 2008 economic meltdown, the depth of the corresponding downward price movement in PGMs perhaps was understandable, but the magnitude and momentum of the subsequent recovery in PGM prices clearly has caught many observers by surprise,” McAllister said in a statement late on Wednesday.
“Palladium at the moment is faring best, having fallen the least and recovered the most, currently off just 27% from its 2008 high. Platinum also has done well, at present down 32% from its high. Rhodium remains down 73%."
At the same time, there has been a convergence of the palladium price towards the platinum price, he commented.
“Last March palladium was trading at just 18% of the price of platinum. Today palladium is priced at 27% of platinum, having closed some of the price gap, but still priced very attractively relative to platinum and rhodium.”
Stillwater expects to see this price gap narrow further, as research increases the potential for substituting palladium for platinum in more and more applications.
"Both the stronger PGM prices and the narrowing of the price gap between palladium and platinum are good for Stillwater with its 3,3 to 1 palladium to platinum mine production ratio,” McAllister said.
PGM prices are being affected by weakness in the US dollar, a surge in precious metal sentiment and investment and the newly approved US exchange-traded fund securities for both platinum and palladium, he commented.
The biggest producer of platinum, South Africa, has seen steady declines in PGM production levels since 2006, despite strong prices and earlier projections of aggressive growth, McAllister said.
“Concerns about South African production have driven the stronger PGM pricing we have seen over the past year.
“And given the predominant role of South African production in meeting world PGM requirements, PGM pricing in the end will always be influenced by the South African PGM market basket with its 2 to 1 platinum to palladium bias, in particular during times of a market shortage of the metals.
“The bias also suggests a continuing need for a strong platinum price to entice the production necessary to meet world PGM requirements.”
However, even after recent gains, current basket prices leave the cost structure and capital sustainability of many South African mines at risk.
On the demand side, surging auto demand and environmental requirements in the developing world are the largest growth factor for PGMs, McAllister said.
“With over 50% of the demand for all PGM metals now competing for the catalytic converter market, price is now the determining factor, which makes palladium the metal of choice.
“With this shift progressing, the auto market growing, and the exhaustion of Russian stocks nearing, price convergence between palladium and platinum will shortly become a reality and determining the appropriate price equilibrium between the two will be a new market riddle.”

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Bayswater matches competing offer for Wyoming properties

TORONTO – TSX Venture Exchange-listed Bayswater Uranium has confirmed it will meet the terms of a superior competing offer for Strathmore Minerals' Pine-Tree Reno Creek properties in Wyoming.
The new offer includes $17,5-million in cash, $2,5-million in Bayswater shares to be paid on closing and a 5% gross production royalty on the properties.
Baywater will advance an additional non-refundable deposit of $250 000 to Strathmore by January 21.
Strathmore and Bayswater have signed an amended purchase agreement, which is subject to Bayswater concluding a financing that will meet the new terms.
Bayswater has been given until April 6 to complete the transaction, Strathmore said in its own statement.
The company had received a competing offer to Bayswater's original big from an unnamed “foreign based corporation”.
Bayswater has already completed due diligence on the acquisition and received shareholder approval for the deal.
"The competing offer provides the opportunity to acquire 100 percent ownership of the Reno Creek Property at a cash cost of  $18,5-million upon closing of the transaction, versus a cash cost of  $26-million over two years," said Bayswater George Leary in a statement.
“We intend to move forward aggressively to finance the acquisition.”

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Ghana prospector Perseus says gets approaches

SYDNEY - Australia's Perseus Mining has received takeover approaches from North American suitors as it gets ready to develop one of West Africa's largest gold deposits and list in Canada, its top executive said.

West African nations including Ghana, Mali and Ivory Coast are increasingly attracting prospectors seeking locations where production costs are lower, sometimes by more than half the cost in Australia, despite higher risks.

"We've definitely been approached and several times by some companies," Perseus' MD Mark Calderwood told Reuters in a recent telephone interview.

"We're not chasing them, they are chasing us," he said, adding the overtures were from gold miners based in Canada.

Calderwood said a "boots and all" offer would be needed to persuade shareholders to sell and in all likelihood would come from Canadian firms "that have the corporate currency to do it."

Perseus' shareholders, about half of which are institutions including Oppenheimer Fund, US Global and Front Street, were happy to see Perseus move into production on its own, he said.

This week Perseus was granted mining leases by Ghana's government for 15 years for its 93,13 sq km Central Ashanti gold project, which has a resource of seven-million ounces of gold.

US brokerage Rodman & Renshaw said in a report on Thursday it expects the Central Ashanti resource to increase to ten-million ounces.

Perseus has already signed a loan facility for the Ashanti project with Australia's Macquarie Bank and Credit Suisse, that includes hedging of 150 000 oz. It also holds 100 000 oz in gold put options with a strike price of $850/oz.

The project still needs environmental clearance by the Ghanian government, which Calderwood expects next month, before construction work on a processing plant handling 5,5-million tons annually will begin.

The company will try to start production of between 230 000 and 250 000 ounces a year ahead of the current target start date of the third quarter of 2011, according to Calderwood.

Listing of Perseus' shares in Toronto is scheduled for the end of January, when it will join other West Africa prospectors and miners, including Red Back Mining Inc, Equinox Minerals and Andean Resources.

Perseus's Australian shares have climbed tenfold since late 2008, helped by rising bullion prices and the promise of much lower production costs than those of gold producers in Australia. The stock closed on Thursday at A$1,99.

Perseus is in the early stages of developing a second mine in Ivory Coast, and this year plans to spend A$25-million overall on exploration, Calderwood said.

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Gold inches above $1 120, platinum softer

TOKYO  - Gold prices inched up above $1 120 on Wednesday although a slightly firmer dollar versus the euro capped gains, while platinum's rally, which lifted prices to their highest in over a year in the previous session, lost steam.

Spot gold was at $1 124,15 an ounce by 0220 GMT, up 0,5% compared to New York's notional close of $1 118,10.

US gold futures for February delivery were at $1 123,20, also up about 0,4%.

Wong Eng Soon, investment analyst at Phillip Futures Pte, said he remained positive about gold's outlook for now.

"I'm quite optimistic on gold because ... although there are expectations that the Fed will be raising rates, the wording from the Fed's statement hasn't been changed yet, meaning that they'll still keep rates low (for the time being)," he said.

"I think gold will be quite well supported."

Higher rates typically boost the dollar and pressure gold, which is often used as an alternative to the US currency.

US December employment data due out on Friday, which is expected to shape the outlook for a rate hike from the Federal Reserve, remained a focus in the market.

In the currency market, the ADP's employment report and ISM non-manufacturing index for December were also attracting attention, along with the minutes from the Fed's last policy meeting, all due later in the day.

The dollar remained on the defensive against the yen on Wednesday after falling sharply the previous day as traders locked in gains on the greenback's rally over the past month ahead of US jobs data later this week.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1 128,745 tonnes as of January 5, unchanged from the previous business day.

The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its silver holdings stood at 9 488,81 t as of January 5, down 0,04% from the previous business day.

Platinum, which had jumped to its highest price in well over a year on Tuesday, lost some of its upward momentum on Wednesday, although sister metal palladium continued to make gains.

Anticipation of industrial demand spurred by strong December sales by Ford Motor Company had helped buying of platinum and palladium, which are used as auto catalysts to clean car exhaust fumes.

Strong economic data and any other indication suggesting a robust economic recovery is likely to spur buying of both metals again, traders said.

Platinum was at $1 528,00 an ounce, down a touch from the New York notional close of $1 528,50, after earlier falling to a low of $1 513,50.

It hit a 16-month high of $1,535.50 on Tuesday.

Palladium was at $419,50, up 0,4% from New York's notional close. It rose to $424 in the previous session, its strong level since July 2008.

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Doe Run Peru's smelter unlikely to restart in Jan

LIMA - Doe Run Peru said on Wednesday operations at its smelter, stopped since June because of financial and environmental troubles, would likely not restart this month as was predicted by the company late last year.

Doe Run Peru, a unit of U.S.-based Renco Group, had said in September that work at its La Oroya smelter would likely resume within "a few weeks." It later pushed the date to January.

The company has delayed the scheduled restart several times as Doe Run has struggled to reach an agreement with its suppliers and potential creditors.

Nearly 20,000 jobs are at stake at La Oroya, one of the most polluted towns in the world.

"It's unlikely (operations) could restart this month," Jose Mogrovejo, the company's vice president of environmental affairs, told Reuters.

"Up to now, we're continuing talks with our potential strategic associates," he said, adding that any agreement would need to be reviewed by the government.

"There have been advances, but unfortunately the negotiations have not ended. Once they're complete, we expect to have an estimate (for a restart)," said Mogrovejo.

The Peruvian Congress voted last year to give Doe Run Peru a 30-month extension on its environmental cleanup program.

The company, which halted work after banks cut its credit, had said it could regain access to loans and restart production at the world's most diversified smelter if the deadline were extended.

Doe Run Peru says it has spent $307 million scrubbing the smelter and may need to spend $150 million more to complete the cleanup. It owes some $110 million to its suppliers.

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Gold Fields cuts Q2 production forecast to 900 000 oz

JOHANNESBURG – South Africa’s second-largest gold-miner, Gold Fields, on Thursday lowered its second-quarter production guidance after seismic-related stoppages hit output.
The company said it expected attributable production for the second quarter of 2010 to be around 900 000 oz of gold, which was 2,8% lower than the previous guidance of 925 000 oz.
The miner explained in a statement that it had lost seven days of production, or almost a one-third of the December production month, at its Driefontein mine in South Africa, after two workers were killed in a seismic event.
Gold Fields noted that in line with the lower production, total cash costs and notional cash expenditure for the group were expected to be about $615/oz and $900, respectively, which was about 4% and 3% higher than the previous guidance.
The gold miner would publish its results on February 4.

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Goldcorp to buy 70% of El Morro project, sees first output 2015

TORONTO  – With gold prices at record levels, and large, undeveloped deposits increasingly hard to come by, competition is heating up between producers of the yellow metal.
On Thursday, Canada's Goldcorp announced it plans to acquire Xstrata's 70% interest in the El Morro copper/gold project in Chile through an agreement with mid-tier miner New Gold, the company that owns the other 30%.
If all goes to plan, construction on the mine will begin this year and first production is scheduled for 2015, Goldcorp CEO Chuck Jeannes told Mining Weekly Online on Thursday.
Goldcorp has set itself up to snatch the asset from larger rival Barrick Gold, which agreed last year to buy Xstrata's 70% for $465-million.
New Gold, led by former Barrick CEO Randall Oliphant, has a right of first refusal on the stake, which it will exercise before selling the 70% interest to Goldcorp.
Goldcorp will advance $463-million to New Gold to fund the exercise of the right of first refusal by a New Gold subsidiary and then acquire the subsidiary, paying another $50-million in cash to New Gold.
Goldcorp has also agreed to carry a full 100% of New Gold's share of funding for the mine, up from the 70% (of its 30% stake) included in the current shareholders agreement.
Barrick spokesperson Vince Borg said the miner had held talks with New Gold but could not agree to the terms sought by the smaller company.
"We participated in New Gold's process but weren't prepared to do the kind of deal that they struck with Goldcorp," he said in an interview.
Borg said Barrick, which had hoped to create synergies between El Morro and its other large projects in the region, will check with Xstrata whether the right of first refusal was properly exercised "and then go from there".
The gold miner will continue to look for acquisitions, but Borg stressed that it will remain disciplined in assessing transactions.
"We don't want to overpay, or get into a situation that doesn't make sense for the longer term," he said. “Carried interests add a burden to a project.”

TICKS ALL THE BOXES

The El Morro project contains 6,7-million ounces of gold and 5,7-billion pounds of copper reserves, plus 2,2-million ounces of gold and and 1-billion pounds of copper resources in the measured and indicated categories.
“We are trying to build a company with cornerstone assets that are large, high-quality, long-life assets in good politically-stable jurisdictions,” Jeannes said.
“And this project ticks all of those boxes.”
In its deal with New Gold, Goldcorp has committed to start construction on the project within 60 days of receiving of all the necessary approvals and permits.
“We were happy to do that because that is certainly our intent, we want to aggressively advance this project,” Jeannes said.
“And it was important to New Gold, because under the prior ownership they didn't really have a sense of when it would be developed.”
Jeannes said Goldcorp plans to move its project team from the large new Penasquito mine in Mexico, which is now nearing completion, to El Morro.
The company is confident it can fund the construction of the $2,5-billion mine internally, with existing liquidity and cashflow, he said.
“I think it's a good deal, in that Goldcorp is going through New Gold, so New Gold is clearly on board here, and it's a good deal for New Gold, because Xstrata does not have a history of actually building mines,” said Adam Graf, a New York-based analyst with Dahlman Rose & Co.
“It's a big, long-lived asset and it's openpit, in a relatively safe part of the world, Chile. So from Goldcorp's perspective, it's good to be able to get ahold of this thing, and to do it in a friendly way,” he said in an interview.
It has been a busy couple of months for Goldcorp, which is also fresh off what appears to be a victorious bidding war for another Canadian company, Canplats Resources, for which it battled a joint venture owned by Newmont Mining and LSE-listed Fresnillo plc.
Jeannes said a year ago he planned to increase production 50%, to 3,5-million ounces, by 2014, setting the company apart from many of its rivals in the industry, which are battling to maintain current production levels, never mind increasing output.
ALL'S FAIR

Goldcorp is Canada's second-biggest gold miner by sales and the second-largest in the world by value, after Toronto-based Barrick.
The two Canadian firms are also joint-venture partners on the Pueblo Viejo gold project in the Dominican Republic, as well as some assets in Nevada.
Borg said he does not expect the El Morro transaction will strain the relationship between the two companies.
"I don't think so. We're competitors, we're peers...it's a small world, the gold-mining world," he said.
But Dahlman Rose & Co's Graf suggested there could still be some tensions.
“I don't think it's a big blow for Barrick. But I think they are probably a little disappointed, and frankly perhaps even a little surprised that Goldcorp is ending up with this,” he said.
“It could be a bit of a strain on the relationship."
Shares in Goldcorp slid 0,65% on Thursday, to C$43,10 apiece by 12:26 in Toronto. New Gold was up 6%, at C$4,26 a share and Barrick shares declined 1,5%, to C$42,51 apiece.

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Cuba 09 unrefined nickel output at 70 100 t

HAVANA  - Cuba's unrefined nickel plus cobalt production weighed in at 70 100 t last year, down slightly from the 70 400 t reported in 2008, state-run media said on Tuesday.

Holguin province's television Cristal reported the production as part of a program on the area's economic performance last year.

The country's three processing plants are located in Holguin.

"The industry did not meet its plan for the year, as the only plant that was able to reach its goal was the Pedro Sotto Alba," the report said, without providing further details.

The provincial state-run newspaper, Ahora, reported this week that output at the Pedro Soto Alba plant, a joint venture with Canadian mining company Sherritt International's, was more than 2000 tonnes above 2008, a record.

Last year Sherritt International reported 2008 output at the plant was 34 673 t of unrefined nickel plus cobalt.

There was no further information on output at the two other plants in the area which are fully owned and operated by state monopoly Cubaniquel.

Earlier this year Holguin media said the year's plan was around 70 000 tonnes and that due to hurricane damage the state-run Ernesto Che Guevara plant, with a capacity of 32 000 t, would produce around 26 000 t.

Scattered reports this year indicated the state-run Rene Ramos Latourt plant, the oldest with a capacity of 10 000 t to 15 000 t, was operating below capacity at various times.

Hurricane Ike, a Category 3 storm, hit Cuba in September 2008 at Holguin's northern coast, where the nickel industry's three processing plants are located, damaging the two Cubaniquel plants, infrastructure, housing and buildings and swamping the area with torrential rains and a storm surge.

Output had averaged between 74 000 t and 75 000 t of unrefined nickel plus cobalt for much of the decade before the storm hit.

Nickel is essential in the production of stainless steel and other corrosion-resistant alloys. Cobalt is critical in production of super alloys used for such products as aircraft engines.

Cuban nickel is considered to be Class II, with an average 90 percent nickel content.

Cuba's National Minerals Resource Center reported that eastern Holguin province accounted for more than 30 percent of the world's known nickel reserves, with lesser reserves in other parts of the country.

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NovaGold expects new Galore Creek plan soon

TORONTO – Vancouver-based NovaGold will publish a new mine plan for its 50%-owned Galore Creek project, in British Columbia, in the first quarter of this year, a company spokesperson said on Tuesday.
The plan will include higher copper and gold price assumptions and an optimised mine design, and will likely be followed by a prefeasibility study, said corporate and investor relations manager Rhylin Bailie.
NovaGold and partner Teck Resources are considering a more “aggressive” programme this year, aimed at getting the project towards a construction decision and although a decision to build the mine is not expected this year, one could be made in 2011, Bailie said.

Teck and NovaGold started building the Galore Creek copper/gold project in 2007, but surprised the market in November that year by announcing that construction would be stopped because of surging capital costs.
Since then, studies have focused on re-engineering and redesigning the project to improve the economics. Work on the access road has also continued.
Galore Creek is a large and lucrative deposit, with measured and indicated resources of 8,9-billion pounds of copper, 7,3-million ounces of gold and 123-million ounces of silver.
Once the new mine plan is completed, the partners expect to start work on the prefeasibility study, which will include a new, updated capital cost estimate, as well as a reserve statement.
The prefeasibility study results are expected by the end of 2010, Bailie said.

NovaGold and Teck are hoping that the re-engineering and design work over the last two years, coupled with easing input costs, will help lower the capital investment required for the project.
When the companies announced the project was being put on ice late in 2007, they revealed that capital cost forecasts for the mine had more than doubled, to as much as $5-billion.
“Construction costs went up in '07 and '08 but have actually come back down quite a bit since their peaks in mid-2008,” Bailie commented on Tuesday.
Vancouver-based Teck will also be in a better position to support the project this year than it was 12 months ago, when the Vancouver-based company was still at the beginning of a long journey to shift the $9,8-billion it borrowed to buy Fording Canadian Coal Trust late in 2008.
Teck has since restructured and improved its balance sheet, and started 2010 on a firm footing.
Finally, the recent announcements by the Canadian and British Columbian governments that they will support the construction of the Northwest Transmission line, along Highway 37 in the northwest of the province, was also an important development for the Galore Creek project.
The power line runs along the highway to Bob Quinn, which is the starting point of the Galore Creek access road.
OTHER PROJECTS
Last month, NovaGold announced it would buy the Ambler copper/zinc/gold/silver project, in Alaska, and the firm has now appointed a project team to plan exploration activities, advance environmental baseline studies and conduct engineering and technical studies at the asset.
The most advanced deposit on the Ambler property is the Arctic deposit, which has measured and indicated resources of 1,5-billion pounds of copper, 2,2-billion pounds of zinc, 450 000 oz of gold and 32-million ounces of silver.
The company said on Tuesday it will continue to work with local communities to support the construction of necessary project infrastructure in the region.
Also in Alaska, NovaGold owns 50% of the Donlin Creek project, in Alaska, and Barrick Gold owns the other 50%.
The companies are studying optimisation scenarios aimed at reducing power and processing costs and further improving economics.
Donlin Creek contains 29,3-million ounces of gold in proven and probable reserves and 6-million ounces in measured and indicated resources.
ROCK CREEK

NovaGold started production at a smaller, wholly owned Alaska project, Rock Creek, in 2008, but put the operation on care-and-maintenance a few months later because of higher costs, permitting difficulties and technical setbacks at the mine, as well as the crisis in the financial markets.

Since then, progress has been made to improve water management, plant design “and the overall condition of the property”, to address the permitting problems and ensure the operation is economic if and when it restarts.
For now, the company is focused on making sure the site complies with environmental and water regulations, Bailie said.
It may consider a number of options, including restarting the mine, bringing on a partner or selling some or all of the project, but no decision is expected in the near term, she said.

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B2Gold reports gold, silver output at second Nicaragua mine

TORONTO – TSX-listed B2Gold has started gold and silver production at its Orosi openpit mine, Nicaragua, the firm announced on Tuesday.
Ore processing started on December 15 and the first dore bar was produced on January 5.
The Orosi mine, which B2Gold acquired last year when it bought Central Sun Mining, is expected to produce between 80 000 and 90 000 oz/y for an initial seven-year mine life.
Cash costs are forecast at $465/oz, B2Gold said.
Operations were suspended at Orosi in the first quarter of 2007, after a re-evaluation of the project indicated that gold recoveries could be improved from around 40% by heap leaching to more than 90% by using a conventional milling operation.
The project has since been completed and the mill is scheduled to ramp up to 3 500 t/d over the next few months.
A second ball mill has been fabricated in China and is scheduled to arrive on site at the end of the first quarter 2010, and be commissioned by the end of the second quarter 2010.
After installation of the second ball mill, throughput will rise to about 5,500 t/d.
B2Gold is already producing gold from the Limon mine, in Nicaragua, which was also acquired in the Central Sun transaction.
Limon is expected to produce about 40 000 oz/y of gold.
Overall, the company expects output at between 120 000 and 130 000 oz this year, at average operating cash costs of between $500/oz and $525/oz.
Both operations are debt free and unhedged.
B2Gold is also exploring for gold in Colombia and Russia

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Partners OK $1,3bn Antamina expansion capex

TORONTO (miningweekly.com) – The owners of the Antamina copper/zinc mine, in Peru, have approved a $1,29-billion project to expand mining and processing capacity at the operation.

BHP Billiton and smaller rival Xstrata both own 33,75% of the asset, Canada's Teck Resources holds 22,5%  and Mitsubishi Corporation owns 10%.
The Antamina expansion project will increase the site’s ore processing capacity by 38%, to 130 000 t/d and annual production of copper and zinc by approximately 30%, Teck said.
In combination with increased mineral reserves, which were increased by around 75% in 2008, the project will boost the mine's operating life by six years, until 2029.
The expansion project cost will be funded out of cash flow and borrowings by Compania Minera Antamina, which owns the mine, and the first production from the expansion is forecast in late 2011.

Located in the Andes mountain range, 270 km north of Lima, Antamina is one of the world's largest copper/zinc mines.

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Chile Codelco makes offer to defuse Chuqui strike

CHUQUICAMATA MINE - Chilean mining giant Codelco made a new wage offer to workers on Monday in a bid to defuse a day-old strike at the world No.1 producer's huge Chuquicamata complex, boosting copper prices worldwide.

Workers at the complex, the world's second biggest copper mine which accounts for about 4 percent of world output, began their strike early on Monday. The job action hit Codelco's production and boosted copper prices to 16-month highs.

But the disruption was expected to be short-lived, and workers are set to vote on the new wage offer on Tuesday.

The strike, the first at Chuquicamata since 1996, came hours after employees at the Altonorte copper smelter said they were close to reaching a wage deal with owner Xstrata to end a separate, near week-long stoppage that also fanned supply fears.

The strike comes a fortnight before a Jan. 17 presidential election run-off in Chile, the world's leading copper producer. If the stoppage drags on it could hurt the chances of the lagging government candidate and overshadow the achievements of the center-left coalition that has ruled for two decades.

"We are going to call an urgent assembly ... to announce the offer and should by law hold a secret vote on it tomorrow," said Hernan Guerrero, president of one of Chuquicamata's three unions.

Codelco sources have estimated the Chuquicamata complex in far northern Chile, which includes the Chuquicamata and Mina Sur deposits and produces around 4 percent of the world's mined copper, will lose up to 1 800 t of copper output per day and cost the state around $8 million per day in lost revenue.

Chuquicamata was expected to produce 565 000 t of copper in 2009.

The stoppage helped drive international copper prices to 16-month highs in London and New York, though a senior Codelco official said the state-owned giant has enough stocks to honor deliveries early this year.

The stronger copper price, coupled with a weak dollar, lifted Chile's peso on Monday.

Strikes at Codelco have historically been short-lived. Analysts expect the latest stoppage to be brief and cause little supply disruption, albeit while supporting market sentiment.

Codelco has said it was ready for the strike but has not specified how long its stocks will last.

The strike comes just as Codelco was set to break years of dwindling output. The company does not face another round of major wage negotiations until later this year.

Strikes and stoppage threats have buffeted Chile in recent months as workers sought a bigger slice of windfall profits as copper prices rebounded from a steep slump late last year.

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Codelco Chuqui vote may end strike

CHUQUICAMATA MINE - Workers at the world's No. 2 copper mine, Chile's Chuquicamata, began voting on Tuesday on an improved wage offer from top copper producer Codelco that could end a two-day strike.
Workers at the complex, which accounts for about 4 percent of world's mined copper, began their strike early on Monday. The stoppage hit owner Codelco's production and boosted copper prices, though though they were off 16-month highs as the stoppage looked set to end.
Union leaders expect the vote, due to end at 2000 GMT, to go narrowly in favour of a revised deal that was more in line with that won by workers at BHP Billiton's Escondida, the world's biggest copper mine, in October.
Both union leaders and the company say they are keen to reach a deal which would end the first strike at the giant open pit mine since 1996 and clear the decks of contract-related strike risks until the next round of major wage negotiations later this year.

Unlike the previous vote, there were no screams for "strike" at polling stations on Tuesday and no repeat of the volleys of tomatoes lobbed last week at union leaders, who were caught wrong-footed when workers voted to strike.
The stoppage comes a fortnight before a Jan. 17 presidential election run-off in Chile, the world's leading copper producer, and the government is seen keen to defuse the protest for fear it could hurt the chances of its trailing candidate.
Worker's vote results are due out late on Tuesday or early on Wednesday. If they approve the vote, workers could resume operations early on Wednesday, union leaders say.
"I voted for the offer," said Yuri Huerta, 37, who had voted to strike in last week's vote. "The administration has delivered an offer that I think is satisfactory to workers."
Some strike leaders said the vote would likely favor a new offer that gives each worker bonuses worth around $24,000 and nearly $6,000 in soft loans. It would also raise their salaries by 4 percent.
Union leaders have said the offer was good for workers and was higher than the previous proposal that gave workers around $23,000 in bonuses and a 3.8 percent wage hike.
"Unfortunately, I think people will approve the offer because we do not have a union leadership which fights for us," said main strike leader Jose Gutierrez, who said he would still vote for a stoppage.
Copper prices in London slipped on Tuesday as a threat to supplies from Chile ebbed.
Benchmark copper MCU3 on the London Metal Exchange traded at $7 485 a tonne in official rings from $7 500 a tonne at the close on Monday, when the metal used extensively in power and construction touched $7 536, the highest since August 2008.

Codelco sources have estimated the Chuquicamata complex in far northern Chile, which includes the Chuquicamata and Mina Sur deposits and produces around 4 percent of the world's mined copper, would lose up to 1 800 tonnes of copper output per day during the strike and cost the state around $8 million per day in lost revenue.
Chuquicamata was expected to produce 565 000 tonnes of copper in 2009.

UNPOPULAR STRIKE
The strike does not have much backing in the country as most Chileans think Chuquicamata workers are asking too much from a state trying to claw out of its first recession in a decade, experts and a private poll say. Workers, who only very narrowly voted to strike, said hard working conditions and their contribution to the economy merits higher benefits.
If the stoppage drags on it could hurt chances of the lagging government candidate, former President Eduardo Frei, and overshadow the achievements of the center-left coalition that has ruled for two decades.
That would help the center-right presidential front-runner, conservative billionaire Sebastian Pinera, who wants to sell up to 20 percent of Codelco and is seen attracting more mine union strife if he wins.
The strike comes just as Codelco was set to break years of dwindling output. Strikes and stoppage threats have buffeted Chile in recent months as workers sought a bigger slice of windfall profits with copper prices rebounding from a steep slump late last year.
Separately, employees at the Altonorte copper smelter lifted a week-long stoppage on Monday after agreeing to a new wage offer from owner Xstrata, which eased supply fears. Workers started to return to late on Monday, a union official said.
The Altonorte complex produced 232 000 tonnes of copper anodes in 2008.
A Xstrata spokeswoman told Reuters the stoppage caused no production losses as it coincided with general maintenance at the plant, which had already lowered anode output to a minimum. Maintenance work, which is carried out every 2-1/2 years, is due to end on Jan. 20.

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Chuqui workers vote to end strike - union leader

CHUQUICAMATA MINE  - Workers at the world's No. 2 copper mine, Chile's Chuquicamata, voted on Tuesday to end a two-day strike and accept an improved wage offer from top global copper producer Codelco, a union leader at the ballot count said.

The union leader said a majority of workers had voted to end the strike at the complex, which accounts for about 4 percent of the world's mined copper. Work would resume early on Wednesday

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