Aurubis Smelter Partner for Copper Mines

Aurubis
Smelter Partner for
Copper Mines
Bastian Bergholz
Director Intermediate Products
Business Unit Primary Copper
Company profile
» Founded in 1866 as Norddeutsche Affinerie AG in Hamburg
» IPO in 1998
» Renamed in 2009 after the acquisition of Cumerio
Aurum + Rubrum = the red gold = Aurubis
» Production sites in European countries and North America with about
6,400 employees
» Second largest producer of copper cathodes in the world with an
annual output of about 1.1 million t of copper cathodes
» No. 1 copper recycler in the world
» Largest rod producer in the world
» One of the world’s leading copper foil and flat rolled product
manufacturers
» Production capacities for approx. 1.3 million t of different copper
products
» Global leader in environmental protection
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Aurubis, an integrated copper producer
Mines and
recycling markets
Copper production
BU Primary Copper
Copper processing
Processors and
end users
BU Copper Products
Iron silicate
CONCENTRATES
Flat rolled
products
SULFURIC
ACID
SHAPES
BU Recycling /
Precious Metals
RECYCLING
MATERIALS
PRECIOUS
METALS
Other
metals
CATHODES
WIRE ROD
Other semi-finished
products
3
Aurubis is the largest buyer on the free
concentrate market
International custom smelter output
(2013; in 1,000 t of Cu content; primary*)
Aurubis
Aurubis
570
460
JX Holdings (JP)
Mitsubishi Materials (JP)
430
Glencore Xstrata (CH)
420
Sumitomo Metal Mining (JP)
420
Jinchuan (CN)
370
Tongling (CN)
360
340
Jiangxi Copper Co. (CN)
* Copper production from concentrates from non-controlled mines
Birla Copper (IN)
240
Sterlite Industries (IN)
230
Source: Wood Mackenzie 12/2013, Aurubis
4
Copper is part of daily life
Global copper demand
by industries
13%
Copper content in various applications
9%
13%
30%
35%
~25 kg
up to ~115 kg
~200 kg
~4,000 kg
~7,300 kg
up to ~30 t
Industrial machines and plants
Electrical and electronic
applications
Construction industry
Traffic and transport
Consumer goods
Source: Wood Macquenzie, Sep 2013
3/3/2014
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New technologies result in more copper
applications
Cable
Alternative energy
Hybrid and electric cars
» Expansion of
electricity grid
continues
» Expansion of
decentralised energy
supply proceeds
» Increased popularity of
hybrid cars worldwide
» High copper demand
» Underground cable
for grid connections
use to become priority
in Germany
» High copper demand
for wind turbines
3/3/2014
» Electric drive is the
technology of the
future, China intends
to become market
leader within 3 years
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Copper concentrates – object of global demand
» Top producers of copper concentrates:
» South America:
5.5 mill. t
» Asia:
3.3 mill. t
» North America: 1.7 mill. t
Copper concentrates:
» Copper ore with 0.5-5 % Cu,
» Mining operations in Africa face
concentrated by grinding and flotation
uncertainties regarding the political
» Typical composition:
environment and infrastructure
» 30 % copper, 30 % iron and
» Declining copper grades and
30 % sulfur
increasing complexity of raw materials
» 10 % other elements (e.g.
precious metals, other complex
materials)
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Main production of copper concentrates in Latin
America – Main consumption in Asia
Mine production (MP) and smelter consumption (SC) 2013e (in mill. t)
2.8
1.7
MP
1.5
7.6
1.0
MP
SC
SC
3.3
1.1
0.7
MP
SC
5.5
MP
SC
1.9
1.0
MP
SC
MP
0.4
SC
Source: CRU 02/2014
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A number of new projects will start up
production before 2020
Size of deposits
Copper price
(in mill. t of copper content)
(in US$/t – 3-month quotation)
10000
140
9000
120
Andina Expansion Phase II
8000
100
7000
80
6000
Escondida (CL)
5000
60
Oyu Tolgoi
(MN)
Collahuasi (CL)
40
Chuquicamata
underground (CL)
Los Pelambres Expansion (CL)
3000
Los Bronces Expansion (CL)
Los Pelambres (CL)
20
Antamina Expansion (PE)
Antamina (PE)
Caserones/Regalito (CL)
Salobo I (BR)
Esperanza (CL)
Batu Hijau (ID)
0
1990
4000
1995
2000
2005
2010
Toromocho (PE)
El Teniente (CL)
Mina Ministro Halees (MMH)
Las Bambas
Quellaveco (PE)
Salobo II (BR)
2000
1000
2015
2020
Source: CRU 01/2014, internet
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The market for copper concentrates has some
special features
» Supply dominated by large mining companies:
BHPB, Rio Tinto, Glencore Xstrata, Freeport
» Custom smelters in the Far East are heavily
subsidized in some cases: duty protections,
general subsidies, state-owned investment
funds
» Increasing EHS (Environment, Health and Safety)
discussions against mining operations
» Volatile mine production due to technical
problems, strikes, etc.
» Declining copper grades and increasing
production of complex qualities
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Aurubis – an excellent and reliable partner for
mining companies
Countries of origin of Aurubis’
concentrate supplies 2012/13
Others
20 %
Chile
19 %
Canada
5%
Peru
18 %
Argentina
10 %
Brazil
12 %
Bulgaria
16 %
Selection of Aurubis’ long-term
suppliers:
» Teck
» Vale
» Anglo American
» Antofagasta
» Glencore Xstrata
» Highly qualified partner with more than 140
years of experience in copper
» Assistance in mine financing (Untied Loan
Facility etc.)
» Reliable offtake partner for concentrates
production
» World class environmental reputation
» High ability to treat complex materials
» High reputation in correct sampling and
analysing
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Environmental compliance is one of Aurubis’ key
strengths and a competitive advantage
Primary copper
Recycling
SO2 emissions of copper smelters
(in kg SO2 per t of copper)
3500
3000
2500
2000
1500
Hamburg site
Pirdop site
Copper smelters:
- European avg.
- International avg.
4
7
42
228
1000
500
Pirdop
Hamburg
0
Source: Brook Hunt 2013, certified data, Aurubis
Aurubis has achieved outstanding success
in environmental and climate protection and
is one of the most environmentally friendly
copper producers in the world today
As the largest copper recycler in the world
with the best available technology, Aurubis
achieves high metal recovery rates while
observing stringent environmental standards
with its multi-metal recycling process
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Aurubis
Smelter Partner for
Copper Mines
Bastian Bergholz
Director Intermediate Products
Business Unit Primary Copper