PNG Copper Price Increases From ($6,200) To ($7,717 per tonne)

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Finance – EMTV Online

Oil prices weaker but copper up sharply: a monthly review of Papua New Guinea’s commodities and financial markets

Copper price grew by 15.2 percent

May 19 (Reuters) – A Chinese conglomerate planning to develop the Frieda River copper project in Papua New Guinea has more than doubled the estimated construction cost for the mine to $3.6 billion after boosting its potential production capacity.

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Copper was a big mover, which is of significance to some of PNG’s big producers. It was up 6.2 per cent over the month, according to Kina Securities, and has risen 22 per cent over the year.

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Copper prices, year to date. Source: Macrotrends

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Copper rose 2.2% overnight to $5813.75 per tonne, its highest price in a month and lead increased by 3.5% to $2194.25/t. Spot gold was last trading at $1195.75/oz.
For many years, copper exports from the Ok Tedi mine in Western Province have provided a major source of foreign exchange for the country.
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Ok Tedi accounts for most of PNG’s exports of copper. Outbound shipments fell from 23,400 tonnes in the second quarter of 2015 to just 7.6 tonnes in the third quarter owing to the closure. The value of copper exports fell from Kina384m (US$140m) to Kina118.6m over the same period. The loss of production and exports in the first half of 2017 would substantially reduce PNG’s copper shipments.
Ok Tedi Mine
The price of copper is currently around 24% below what it was in the first quarter of 2015, which means that pressure on the mine’s cash flow has only increased. Despite a forecast rebound in copper prices of 16% in 2017, Ok Tedi’s production costs are likely to remain higher than copper prices in the coming years. Overall, notwithstanding its impending restart, the long-term future of the mine is in doubt if copper prices remain at their current low levels.
By Blogger Dwaightz

 

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