Why the Copperbelt is SO Important to the Transition-First Quantum Cost Structure
By Tshepo Magagane – Pangaea Mining & Infrastructure Executive
[Kansanshi – Copper C1 cash cost1 of $1.21 per lb was $0.08 lower quarter-over-quarter as a result of the drawdown of stockpiles
Sentinel – Copper C1 cash cost 1 of $2.11 per lb was higher than the preceding quarter as a result of lower production volumes and higher tolling and freight costs.]
When you start to exploit the low-grade ore you see globally, think of their Cost Structures. FQM Head Geo put it best last year: “But the energy involved in mining, hauling, crushing and pulverising this rock to extract the tiny amounts of copper in each tonne is so enormous, and now so expensive and carbon-intensive (if that worries you), that one has to wonder if this is really the right direction.”
The capex intensity and opex level will be significantly higher. Therefore, if you can secure projects that operate within the current pricing environment, you possess a remarkable opportunity as the world endeavours to bring these global low-grade projects into production.
