Glencore Xstrata has decided to sell its majority stake in an undeveloped copper mine in Papua New Guinea. The company will sell the stake “for $125 million to Australia-based PanAust Ltd, after more ambitious plans for the project were scaled back,” reports Reuters.
“Before the Glencore acquisition, Xstrata had big plans for Frieda River, which was being designed to yield 304,000 tonnes of copper at an average cost of 71 U.S. cents per pound over the first five years. Some $200 million was spent on pre development work.”
“However, the mine plan has since been trimmed to focus on a smaller near term development, underscoring belt-tightening underway in the sector as the global mining boom fades.”
The day’s biggest mover broke away from a static phase with a 1.5 percent jump on Thursday, October 31. After three changeless days, US copper producer grade 110 price closed. The price of US copper producer grade 122 rose by 1.5 percent after a three-day flat streak. After a 1.4 percent increase, the price of US copper producer grade 102 finished the day. The Japanese copper cash price gained 1.1 percent to finish.
Chinese copper prices were mixed for the day. Chinese copper wire gained 0.9 percent to finish. The price of Chinese copper bar increased 0.8 percent. The Chinese copper cash price finished the market day up 0.8 percent per metric ton. Chinese bright copper scrap held its value on Thursday.
After rising 0.8 percent, prices settled at $7,275 per metric ton, driving an accelerated rise since Friday, October 25. Today marks the fifth day in a row of improvement for the primary copper cash price on the LME. Today marks the fifth day in a row of increases for the 3-month price of copper. After climbing 0.8 percent on the LME, prices settled at $7,277 per metric ton, driving an accelerated improvement since Friday, October 25.