Nevada Copper starts production at mine in western U.S.

Nevada Copper

16/12/2019 17:44

By Ernest Scheyder
    Dec 16 (Reuters) - Nevada Copper Corp  NCU.TO  said on
Monday it has started production at its Pumpkin Hollow mine in
the western United States, one of the first new mining projects
to open in the country in decades.
    The mine is opening just as copper prices  CMCUc1  are
projected to rise due to increasing demand from the electric
vehicle industry. Once seen as a laggard in the global mining
industry, U.S. copper deposits have drawn nearly $3 billion in
recent investments from small and large miners alike. 
    Nevada Copper spent about $200 million to develop the
underground mine, less than 60 miles (100 km) from Tesla's
 TSLA.O  massive Gigafactory in the state's northern edge. The
mine is expected to produce about 27,000 tonnes of copper
concentrate annually.    
    The mine's operating cost of $1.86 per pound is about 49
percent below current copper prices. 
    The underground mine is expected to operate for about 13.5
years. Nevada Copper plans to finish a feasibility study by the
end of next year on whether to construct a nearby open-pit mine.
The company controls about 22,000 acres in northern Nevada and
says it believes it has expansion potential. 
    The mine was developed amidst a push by U.S. President
Donald Trump and other officials in Washington to boost domestic
minerals production to reduce the nation's reliance on rivals. 
    Nevada Copper has agreements to supply all of its copper for
the next three years to several parties, including commodities
trader Transamine Trading SA. urn:newsml:reuters.com:*:nL2N2820LS
    Tesla Inc  TSLA.O , SK Innovation Co  096770.KS  and other
automakers and battery makers are opening or expanding across
the United States, facilities that are expected to consume a
rising share of copper produced in the country.       
    Rival miner Rio Tinto Plc  RIO.L  RIO.AX  said earlier this
month it would spend $1.5 billion to expand its Kennecott copper
mine in Utah. Glencore Plc  GLEN.L  took control earlier this
year of PolyMet Mining Corp  POM.TO , which is developing a
Minnesota copper and nickel mine. And Freeport-McMoRan Inc is
spending heavily to build out several Arizona copper
mines. urn:newsml:reuters.com:*:nL1N28D0RN urn:newsml:reuters.com:*:nL2N25918E 

 (Reporting by Ernest Scheyder; editing by Philippa Fletcher)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
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