Copper resources and development in China and abroad

Geological conditions of China's copper mine is better, the world's third largest copper metallogenic belt - Tethyan metallogenic belt, Central Asia (ancient Asia) metallogenic belt and the Pacific Rim have passed metallogenic belt in China. By the end of 2001, there were 974 copper mines in China, with a reserve of 19.41 million tons of copper and a base reserve of 30.83 million tons. Based on the copper content of steel concentrates with an annual output of 600,000 tons, the existing copper reserves can only be guaranteed for 17 years. Even if the reserves are all upgraded to reserves, they can only guarantee 28 years of mining. China's copper resources, especially large and copper-rich resources, are insufficient.

With the continuous expansion of China's copper demand and copper smelting scale, China's copper raw material imports will have a large increase on the existing basis, and the contradiction between supply and demand is increasingly intensified.

Major domestic production and construction in progress

China's large copper mine resources and development process

By 2006, domestic ownership copper metal reserves of 100 million tons, production capacity of 1 million tons / year of copper mine resources and development processes are shown in Table 1.

Table 1 Statistical comparison of copper mine resources and development processes
Serial number
Mineral name
/Industrial type
Cumulative proven reserves
(10,000 tons of copper)
Reserve
(10,000 tons of copper)
Average geological copper grade (%)
Associated element
Development and utilization
Mining process
/Ore production
Selected grade / associated element / ore processing
Jiangxi
Dexing Copper Factory
/porphyry type
524.47
381.49
0.457
0.20 g / ton of gold,
1.11 g / ton of silver
produce
Open air / 33 million tons
/year (border grade from
0.3% reduced to 0.25)
Conventional flotation
Dexing Fujiawu
/porphyry type
257.32
210.82
0.501
0.054 g / ton of gold,
3.31 g / ton of silver
Expansion
Open air / from 500
Expand 10 million tons / year
Conventional flotation
Jiangxi Wushan (North-South District) Copper Mine
128.29
110.9
1.16
0.377 g / ton of gold,
10 g / ton of silver. A total of 36.1 g / ton of gold 961 g / ton of silver
Production / expansion
Underground / 100
/1.65 million tons / year
Conventional flotation
Jiangxi Chengmenshan Copper Mine/
Skarn type
166.44
167.13
0.68
0.27 g / ton of gold,
11.97 g / ton of gold,
Total 16% sulfur:
Sulfur 37.68 million tons,
69.74 tons,
2,769 tons of silver,
碲 5572 tons,
4156 tons of gallium , 8543 tons of cadmium
Production / expansion
Open pit mine / 700,000 tons / year (the second phase of the end of 2009 expansion to
3.25 million tons / year)
Phase I copper 1%
Phase II copper 0.68%
Mineral processing : conventional flotation process
Jiangxi Yongping Copper Mine / Skarn Type
143.85
107.33
0.72
0.046 g / ton of gold,
7.81 g / ton of silver,
12.83% sulfur
Production / expansion and expansion
Open pit mine / open pit to underground / a total of 3.5 million tons
Flotation process
Gansu Jinchuan Copper- Nickel Mine
340.29
285.18
Average 0.73
1.0% to 1.5%
Nickel metal (main metal)
6.8 million tons / year (up to 10 million tons in 2010)
Flotation process
Jinchuan Longshou Mine
0.72
Production / expansion
Underground / 1.65 million tons / year
Jinchuan No.2 Mine
0.76
Production / expansion
Underground / 4 million tons / year
Jinchuan No. 3 Mine
0.65
Production / expansion
Underground / 1.15 million tons
Shanxi
Shanxi Copper Mine
203.85
173.64
0.68
0.0072% cobalt , 0.0032% molybdenum ,
0.0068 g / ton
Gold 0.67 g / ton of silver
Production / expansion
4 million tons/year underground (flat) (expanded to 6 million tons/year in 2009)
Conventional flotation
Anhui
Tongling Winter Melon Mountain
98.41
98.41
1.02
19.7% sulfur 0.24 g / ton gold, 8.67 g / ton silver
produce
Underground / 3.3 million tons / year
Conventional flotation
Yunnan
Yunnan
Dongchuan Tangdan
128.41
126.81
1.21
0.43 g / ton of gold,
8.1 g / ton of silver,
15.83% sulfur
produce
Underground / 2.2 million tons / year
Conventional flotation - refractory ore
Yunnan Red
(East, West Section) Copper Mine
152.73
152.51
0.81
0.18 g / ton of gold,
1.86 g / ton of silver, 21.95% of iron and sulfur and other elements
Production / expansion
Underground / 1.6 million tons / year (1.1% copper in the first phase of mining, 0.8% copper grade in the second phase, and 15,000 tons/year 0.65% copper grade in the second option (copper and iron combined mining)
Conventional flotation - refractory ore
Xinjiang
Xinjiang
Ashele Copper Mine
108.56
108.56
2.49
2.36% copper 2.92% zinc (average ore of all ore 1.08%)
Production / expansion
Underground / 1.65 million tons / year
Conventional flotation
Fujian
Fujian
Zijinshan Copper Mine
129
146
129
146
1.02
(underground)
The deposit is a gold ore under the gold, where:
Gold ore 0.5~3g/t gold
Production / expansion and expansion
Underground to open air / copper ore 6.6 million tons / year (gold ore 37.5 million tons / year)
Heap leaching
total
2389.72
2045.5
0.63
(open air)
79.5 million tons / year (after 2009)

The mine resources and development technology for the copper mines to be developed in China are more than 1 million tons, and the production scale is up to 10,000 tons of refined copper. See Table 2.

Table 2 Statistical comparison of mines to be developed
Serial number
Mineral name
Cumulative proven reserves
(10,000 tons)
Reserves (ten thousand tons)
Average copper grade (%)
Stage of project
Proposed mining method / ore production
Resource characteristics and associated metals
1
Tibet Yulong
650
650
0.94
Feasibility study stage
Open air / 1.11 million tons
/year (heap leaching treatment)
among them:
3.76 million tons of sulfide ore,
2.74 million tons of oxidized ore
2
Tibet Xie Tongmen
87.9
87.9
0.41
Feasibility study stage
Open air / 13.2 million tons / year
average:
0.567 g / ton of gold, 3.66 g / ton of silver
3
Heilongjiang Duobaoshan
244
244
0.47
development stage
Open air / 15 million tons / year
110,000 tons of mo
4
Inner Mongolia Xinbaerhu Right Banner
126.8
126.8
0.46
design phase
Open air / 9 million tons / year
Molybdenum 258,000 tons, grade 0.055%, zinc 34,000 tons, silver 16 tons, alum stone 79.3 million tons
total
1108.9
1108.9
38.31 million tons / year
Production capacity from 2010 to 2013

Major offshore mines

Zambia Chambishi Mine (China Color Mining accounts for 85% of the shares)

(1) Resources and reserves (see Table 3)

Table 3 Qianhua Copper Mine Resources and Reserves
Ore body number
Main ore body
Western ore body
Lower ore body
Southeast ore body
total
Deposit type and characteristics
range
More than 900 meters / 900 meters to 1700 meters
Sand shale type copper ore,
Buried underground
500 to 1700 meters,
Copper grade 1%.
Amount of ore (ten thousand tons)
2902/1531
5200
134
13000
22768
Copper grade (%)
2.69/2.37
2.14
4.22
2.08
2.20
Copper metal amount (10,000 tons)
77.9/36.3
112
5.67
270
501
status
produce
Construction
To be developed
To be developed
Mineral production, copper and main associated element grades,
Mineral recovery rate
1.32 million tons / year, 1.89% ~ 1.93% copper grade, 95% ~ 96% recovery rate (2007).
(2) Production and construction and process conditions

The Chambishi Copper Mine resumed construction of the underground mine on July 28, 2000, and was completed and put into operation on July 28, 2003. The mining capacity of the Chambishi Copper Mine is designed to be 6,500 tons/day. Underground production is jointly developed by vertical shaft and slope pressure passage, filling method, empty field method, caving method mining, scraper mining, electric motor vehicle transportation, and shaft lifting mining technology. The ore dressing adopts three sections and one closed circuit crushing, a closed-circuit large-scale ball mill grinding, flotation column selection, and medium-mineral re-grinding separately. In 2007, the actual ore was selected to be 1.32 million tons of ore, which was selected as the grade of 1.89% Cu. The final product is a copper concentrate.

(3) West ore body construction project

On October 27, 2007, the construction of the western ore body was officially started. The west ore body of the Chambishi copper mine adopts the main slope road + central auxiliary shaft development method. The mining method is point column filling method, layered filling method and approach filling method. The ore dressing is three sections and one closed road crushing ore, one section of rough grinding, Flotation, re-grinding, de-selection and dehydration. The construction project has an investment of 100 million U.S. dollars, and the construction period is 3 years. It will be put into operation at the end of 2010. After the mine is completed and put into production, the annual output of copper ore is 1 million tons and the concentrate copper content is 18,000 tons.

Pakistan Sandak Copper Mine (MCC Leasing Management)

(1) Statistics of resource reserves (see Table 4)

Table 4 Statistics on the reserves of the Shandake copper mine in Pakistan
Ore body number
Southern ore body
Northern ore body
Western ore body
total
Deposit type and characteristics
Amount of ore (ten thousand tons)
11100
2800
27300
41200
Porphyry copper mine,
The deposit is exposed to the surface.
The cut-off grade is 0.25%.
Copper grade (%)
0.44
0.43
0.34
0.388
Copper metal amount
(10,000 tons)
48.84
12.04
92.82
1.6 million tons of copper / 2.44 million ounces of gold
/273 million tons of silver
status
produce
To be developed
To be developed
Mineral production, and copper and major associated element grades
4.5 million tons / year, 0.41% ~ 0.42% copper, 0.49 ~ 0.5 grams / ton of gold, 89% recovery.

(2) Open-pit mining resources and processes

Due to the relatively good conditions for the construction of resources in the South Ore, the South Ore Body was first developed. The southern ore body design open pit mine can have a mining capacity of 78 million tons, copper grade 0.434%, and gold 0.476 g/ton. The average stripping ratio is 1.91/1, and the production stripping ratio is 3/1. It is made of a 251 mm roller rig made in China, 10 cubic shovel and 68 ton truck. The mine production service period is 20 years. Using the conventional flotation process, the annual processing capacity of ore is 4.5 million tons, and the annual output of concentrate is 1.6 million tons of copper, 1.47 tons of gold and 2.76 tons of silver.

Copper mine resources project to be developed outside China

Between 2006 and 2008, China's major mining companies have obtained at least six large-scale copper mineral resources projects abroad. The copper resources of these projects are more than 1 million tons, and the total resources are 35.19 million tons. The resources of these copper resource projects abroad are greater than the sum of China's copper resource base reserves.

Mine dispatch and mining process (see Table 5)

Brief Analysis of Characteristics of Copper Mines to Be Developed Abroad

Table 5 6 large copper mine resources and mining processes
Serial number
1
2
3
4
5
6
1
Project country name
Peru
Toro Mocho Copper Molybdenum Mine (Toramachao)
Peru
Baihe Copper-Molybdenum Mine (Rio Blanco)
Peru
Galeral copper molybdenum ore (Galeno)
Afghanistan
Aynak Copper Mine (Aynak)
Mexico
Baholazi copper-zinc mine (Bahuerachi)
Kyrgyzstan
Kuru - Festival Gayle
Copper and Gold Mine (KURU-TEGEREK)
2
owner
(resource value)
Chinalco 91%
($860 million)
Purple gold bronze crown 89.9%
(94 million pounds)
Minmetals River Copper (4.55) billion Canadian dollars
MCC Jiangxi Copper (US$808 million, paid in installments)
Jinchuan Group
($214 million)
Shenzhou Mining
($10 million)
3
Deposit type
Porphyry
Porphyry
Porphyry
Sedimentary rock type
Porphyry/skarn type
Skarn type
4
Resource/reserve
Probing + Control:
1.834 billion tons, copper grade 0.47%, silver grade 6.8 g / ton, molybdenum 160ppm
Metal amount:
Copper 8.57 million tons, molybdenum 300,400 tons, silver 12427.8 tons.
infer:
241 million tons, 0.41% copper, 8.3 grams/ton silver, 100 ppm molybdenum. The amount of metal: 198,100 tons of copper, 2.41 million tons of molybdenum, and 2000 tons of silver.
Approximately: 9.55 million tons of copper
Proved + control: 1.303 billion tons, copper grade 0.57%, molybdenum grade 218ppm molybdenum metal amount:
Copper 742.71, molybdenum 284,000 tons
Probing + Control:
963 million tons, copper grade 0.47%, gold 0.11 g / ton, silver 2.54 g / ton, molybdenum 0.01%.
Metal volume: 4.09 million tons of copper, 95 tons of gold, 2195 tons of silver, and 116,900 tons of molybdenum.
Probing + Control:
705 million tons, the average copper grade is 1.56%. The amount of metal is 11 million tons.
(Central District)
Reserves: 185.1 million tons, copper grade 2.37%
Metal amount: 4,981,300 tons. Open-pit mining reserves: 57.62 million tons, copper grade 2.5%, metal volume 1,440,500 tons
Probing + Control:
524 million tons, average copper grade 0.4%, zinc 0.55%, gold 0.03 / g / ton, silver 4.03 g / ton, molybdenum 0.008%.
Metal amount: 2.1 million tons, zinc 2.88 million tons, molybdenum 42,000 tons
Detect + Infer:
172.7 million tons, copper grade 0.65, gold grade 0.56 g / ton, silver grade 2.15 g / ton.
Metal amount: 1.02 million tons of copper, 97.3 tons of gold, and 372.0 tons of silver.
5
Boundary grade
0.27% copper (equivalent)
0.4% copper
0.4% copper
0.75 copper (1.4% for industrial grade open copper and 1.6% for underground)
0.2% copper
0.2% copper
6
project status
Pre-feasibility study completed in 2006, the next feasibility study stage
Feasibility study stage
Pre-feasibility study completed in January 2007, the next feasibility study stage
Pre-feasibility study in 2004, next feasibility study stage
Summary study in 2007, next pre-feasibility study
Preliminary design phase of the project
7
Proposed selection
Mode / output
Open pit mine / 9 ~ 150,000 tons / day mining capacity. Traditional flotation and heap leaching process
The initial capacity of 70,000 tons in the open pit mine and the daily mining capacity of 150,000 tons of ore in the later period
Open-pit mine 90,000+
Ore daily selection ability
(32.4 million tons / year)
Open pit mine 60,000 tons /
Daily selection ability,
Traditional flotation process
Open air + underground,
Open pit mine
2.354 million tons / year
Open air + pit (Pingyu + chute), open air 700,000 tons / year, 3.3 million tons / year of mining
8
Average stripping ratio
0.91/1
0.89/1
0.28/1
7.8/1
1.94/1
9
Product solutions
Copper, molybdenum concentrate and anode copper
Copper and molybdenum concentrate
Copper and molybdenum concentrate
Copper concentrate
Copper, molybdenum, zinc concentrate
Copper concentrate and gold concentrate

(1) The resources are basically reliable, and the mining investment environment is better.

In recent years, China's large-scale copper resource projects that have been acquired or cooperated abroad have some early discoveries, some are recently proven, and the projects are all advanced research projects. The degree of work has reached the preliminary feasibility study, and the project resources are basically reliable. The investment environment is good, and the main problems and risks of the project have been fully exposed, which is conducive to the further development of the follow-up work of the project.

(2) Small technical risks

The above projects are all developed by the day, most of which are flotation treatment processes, and a small amount will be the heap leaching process. The products are lead , molybdenum, zinc, gold concentrate, etc. The process technology used has been tested by long-term practice at home and abroad. The project technology is mature and the technical risk is small.

(3) Infrastructure construction and environmental protection are the key and difficult issues for the smooth development and operation of the project.

According to the progress of the world's large-scale porphyry-type copper mine project in the past two years, due to the rising prices of world energy oil and various materials, rising labor costs, coupled with the depreciation of the US dollar, global equipment prices and construction costs have risen sharply. The government generally attaches great importance to environmental protection policies in mining development, and its standards have been improved to varying degrees. The cost of mine water treatment and anti-corrosion measures has been increased, and the investment costs and operating costs of mine development and construction have been increased.

(4) The investment amount is large and the construction period is long.

According to the analysis of the investment trend of large-scale copper mine construction in the world, the comparative analysis of conservative projects, the open-pit mining method, and the construction investment estimate of an average of 50-100 US dollars/ton of ore units, all the above copper mine projects are about to be developed. The amount of investment required for construction is between US$8.5 billion and US$15 billion.

According to the engineering analogy, if there is no major change in the world economy, the copper price in the international market is within the expected level of the project. The environment of the above project development has not produced any major unfavorable factors, so that the project can progress normally, and the feasibility study has been completed individually. Projects entering the preliminary design phase are expected to enter the production phase in 2011, and most projects will achieve mine production between 2012 and 2015.

(5) The increase in international transportation costs and product solutions affecting project development.

China is a big copper consumer and a copper smelting country. Domestic copper can not meet the needs of domestic smelting and consumption. In 2006, the amount of copper concentrate imported from abroad exceeded 3.6 million tons. Most of China's foreign copper resources projects are based on the production of copper concentrates as a mine product, and then into the domestic smelting processing as a product destination for copper resource development. As the era of global energy and low prices has ended, the rise in oil prices has led to a sharp increase in freight rates. According to the feasibility study of individual copper mine projects, the transportation cost of domestically produced copper concentrates shipped back to China has accounted for 17-20 of the project operating costs. %, and will rise further with the oil price. The international transportation cost will become a relatively sensitive factor affecting the operating efficiency of China's copper mine projects abroad, which will greatly increase the cost risk in the future operation of the project.

It is necessary to take into account the relationship between China's foreign copper resource project resource control strategy and the economic benefits of project development; fully consider the relationship between the project site and the product destination in terms of economic and rational transportation in the selection of foreign resource projects. For the copper resource projects that have been acquired, if the resources and development conditions are relatively general and the copper resources projects with weak cost competitive advantages can be considered, the copper concentrates or deep processing copper resources development products can be considered.

The product design of Zhongshui Mining in Zambia Copper Mine in Zambia is to produce copper concentrate. The destination of the product is domestic, but after comprehensive analysis and comparison of transportation costs, the copper concentrate produced by Qianming has been sold locally. With the increase in production of mines and the increase in production of copper concentrates, it is planned to adopt the method of “smelting and deep processing in the area; the Shandake copper mine in Pakistan of MCC, from the project design, is the way of smelting and producing crude copper on the spot. The copper concentrate of Bixi Copper Mine is transported back to China, which is beyond the reasonable economic transportation of the project site and product destination. If it is sold or processed locally, the economy will be more reasonable. The Shandake Copper Mine has low grade and development conditions. Generally, the cost of land transportation is higher than that of sea transportation. After crude smelting, copper is sold to the domestic market, which greatly reduces the pressure on transportation costs.

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