Tia Maria copper mine advances as Peru copper pipeline grows

Tia Maria copper mine

The Tia Maria copper mine has reached a key milestone, with construction 23pc complete and production targeted for 2027. Southern Copper views the Tia Maria copper mine as a cornerstone of its Peruvian growth strategy. As a result, the Tia Maria copper mine could become a major new source of copper supply in a tightening global market.

Tia Maria copper mine moves toward 2027 start-up

Southern Copper has completed most access roads and platforms, and will soon begin pre-stripping at La Tapada, the main pit. The $1.8bn project is designed to produce 120,000 t/yr of copper once fully ramped up. Peru’s energy and mines ministry recently approved the production permit, clearing a major regulatory hurdle.

Over the first 20 years of operation, Southern Copper expects about $18.2bn in export revenues at current prices. The mine should also generate around $3.8bn in taxes and royalties, reinforcing its fiscal importance for Peru. Therefore, Tia Maria sits at the intersection of corporate growth, export earnings and regional development.

Southern Copper deepens its Peruvian copper portfolio

While Tia Maria advances, Southern Copper’s existing Peruvian open-pit mines face short-term headwinds. Third-quarter production from Toquepala and Cuajone fell by 8.4pc and 5.6pc, respectively, leading to a 7.3pc quarter-on-quarter decline. This context increases the strategic value of bringing new assets like Tia Maria on stream.

Beyond Tia Maria, Southern Copper is building a multi-asset pipeline in Peru. The Los Chancas project, backed by $2.6bn in investment, is expected to start in 2030–2031 and produce 130,000 t/yr of copper and 7,500 t/yr of molybdenum. However, the company must first regain full control of the project area from illegal miners. Michiquillay adds further growth, with planned output of 225,000 t/yr of copper from 2032 and a $2.5bn capital plan. Together, these projects position Southern Copper as a long-term anchor of Peruvian copper supply.

The Metalnomist Commentary

Tia Maria’s progress shows how long-gestating copper projects are finally moving toward execution in Peru. For Southern Copper, synchronising Tia Maria with Los Chancas and Michiquillay turns the country into a multi-decade growth platform. The key risk now lies less in geology and more in social, permitting and security dynamics around these high-profile assets.

Southern Copper Resumes Tia Maria Project in Peru with Revised Investment

Southern Copper

Southern Copper, a subsidiary of Grupo Mexico, is moving forward with its Tia Maria copper mining project in Peru after a delay of several years due to community opposition. The company has revised its initial investment estimate to $1.8 billion, up from the original $1.4 billion, signaling a renewed commitment to this controversial project.

Tia Maria: A Controversial Project Set to Boost Copper Production

The Tia Maria project, located in the Arequipa region of Peru, is expected to produce around 120,000 metric tonnes of copper annually. Despite its potential, the project has faced significant opposition due to concerns over its environmental impact, which were raised in its original 2014 environmental impact statement. In response to these concerns, Southern Copper has made several changes, including updating the environmental study. This update was approved in November 2023 and includes the decision to abandon plans for a desalination plant as the primary source of water for the project.

The project’s first phase of construction, scheduled for this year, will focus on developing essential infrastructure such as roads, access points, railways, and temporary encampments. A 59km enclosure has already been established around the main property.

Economic Impact and Future Prospects

Once fully operational in 2027, Tia Maria is projected to generate significant economic benefits. The project will create 764 direct jobs and an additional 4,800 indirect jobs. Southern Copper expects to export $17.5 billion worth of copper over the first 20 years of the project’s operation. This production boost comes at a time when Peru continues to be one of the world’s top copper producers.

Southern Copper's commitment to the Tia Maria project follows a positive year for the company. In 2024, the company reported a record $11.4 billion in net sales and a profit of $3.4 billion. This growth was driven by higher copper prices and increased sales of molybdenum, zinc, and silver.

Challenges at Los Chancas

In addition to Tia Maria, Southern Copper is developing the Los Chancas project in the Apurimac region, which is expected to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually once operational in 2031. However, the project has been delayed due to illegal mining activities in the area. Southern Copper is working closely with Peruvian authorities to address this issue and plans to restart environmental impact, hydrogeological, and geotechnical studies once the situation is resolved.

Tia Maria copper mine production permit reshapes Peru’s copper future

Southern Peru Copper

The Tia Maria copper mine production permit marks a major turning point for Peru’s copper pipeline. Peru’s energy and mining ministry has cleared Southern Peru Copper to begin production at the long-delayed project. As a result, a stalled $1.8bn investment is now back on track, with first output targeted for 2027.

Political shift unlocks stalled Peruvian copper project

The Tia Maria copper mine production permit is one of the first significant decisions under president Jose Jeri. His new cabinet inherits a project blocked since 2019 by intense community resistance and criticism of its environmental impact study. However, regulators approved an updated study last year after the company dropped plans to use a desalination plant as its main water source.

Meanwhile, the permit comes amid national demonstrations against the new administration, including protests in Arequipa. That context raises the risk that opposition could re-emerge as construction ramps up. Therefore, Southern Peru Copper will need strong community engagement if it wants to avoid renewed roadblocks.

Southern said it expects to restart construction before year-end, targeting 120,000 t/yr of copper output. The Tia Maria copper mine production permit thus adds a sizeable greenfield project to Peru’s medium-term supply outlook. The mine would join Quellaveco — commissioned in 2022 — as the country’s newest large copper operation.

Peru copper supply, community risk and market impact

Peru remains one of the world’s top copper producers, with 1.8mn t output so far this year. However, production fell by 2pc in August versus a year earlier, underlining operational and social headwinds. Southern is currently the country’s second-largest copper producer, at 15pc of national output, narrowly behind Las Bambas.

As a result, successful delivery of Tia Maria would strengthen Peru’s role in meeting future copper demand. The project’s 120,000 t/yr could help offset disruptions elsewhere in the Andean copper belt. Yet social licence remains the key variable, especially in water-stressed regions with strong local opposition.

Global buyers and traders will watch whether project execution proceeds without major conflict. Any renewed escalation around Tia Maria could trigger further delays or even another suspension. Therefore, the project now sits at the intersection of politics, community relations and global copper supply security.

The Metalnomist Commentary

Tia Maria’s approval signals that Lima is willing to push strategic mining projects despite social and political tension. If Southern can stabilise community relations, the project will reinforce Peru’s standing as a core long-term copper supplier. But any misstep could become a cautionary tale on how environmental trust and local consent now define project viability.

Peru Copper Project Resumes Operations After Prolonged Hiatus

On Monday, Southern Copper resumed operations at its Tia Maria copper mine project in Peru after a prolonged hiatus due to opposition from local residents. The Mexico-based company had suspended activities since 2019 due to this opposition. With the resumption of efforts, copper production is expected to start before 2027, according to executive president Oscar Gonzalez.

The resumption of the project has been carefully planned, with Southern Copper consulting with government officials to determine 'the most appropriate time to restart operations at Tia Maria'.

Tia Maria, one of Peru's most controversial mining projects, has faced significant community opposition since 2009, resulting in numerous injuries and the tragic deaths of at least six civilians and one police officer. The project's delay has also disrupted a vital source of copper production for Peru, the world's second largest copper producer.

However, protests have tailed off in recent years.

Speaking at a national mining conference last month, Romulo Mucho Mamani, the minister of mining and energy, said that the revival of the project had made 'spectacular progress' this year. He stressed the urgent need to accelerate Peru's stalled mining projects to boost the country's copper output, a critical mineral for the global energy transition.

Mucho Mamani predicted that Peru's copper production would rise from 2.7 million tonnes a year in 2023 to nearly 3 million tonnes a year by the end of 2024.

Reflecting on past delays, Mucho Mamani said: "If the Conga and Tia Maria projects had not been delayed or stopped in 2011, we would be talking about copper production of no less than 4 million tonnes per year, perhaps even more.

The Tia Maria project, with an estimated total investment of $1.4 billion, is expected to produce 120,000 tonnes of copper per year.

Hudbay Peru copper mine faces temporary shutdown amid social unrest

Hudbay Peru copper mine

Hudbay Peru copper mine operations have been temporarily disrupted by nationwide unrest and local protests in the southern mining corridor. The Hudbay Peru copper mine suspended milling at Constancia after road blockades and demonstrations escalated into security risks. As a result, the company has demobilised non-essential staff while using the shutdown to advance planned maintenance work.

Protests disrupt Peru’s southern mining corridor

Peru’s informal miners have intensified protests over stricter permit rules, repeatedly blocking strategic transport routes. These routes are vital for large producers in the southern mining corridor, including the Hudbay Peru copper mine at Constancia. Meanwhile, riots in Lima and demonstrations near the site heightened safety concerns and forced the temporary halt in milling operations.

However, Hudbay is trying to turn the disruption into an operational opportunity. The company plans to use the downtime for preventative maintenance and to pull forward scheduled work originally planned for later in the year. This approach aims to minimise future interruptions once the Hudbay Peru copper mine resumes normal throughput.

Production guidance remains intact despite Constancia halt

Hudbay has stressed that the temporary suspension should not derail its 2025 output targets. The company continues to reaffirm its copper production guidance of 117,000–149,000t for the year, despite the pause at Constancia. As a result, investors and customers are being reassured that the disruption is manageable rather than structural.

Constancia has operated since 2014 and remains one of Peru’s key copper assets. Therefore, any downtime at the Hudbay Peru copper mine is closely watched by global copper markets. Yet the company’s signal that guidance remains unchanged suggests that ore stockpiles, flexible scheduling and maintenance planning are cushioning short-term impacts.

Hudbay is also engaging with government and legal authorities to help resolve the unrest. In the near term, the stability of the southern mining corridor will depend on how quickly authorities can defuse conflict with informal miners. As a result, the risk profile for Peru’s wider copper sector remains elevated, even if Constancia’s immediate production outlook appears secure.

The Metalnomist Commentary

Constancia’s brief halt is another reminder that social licence, not geology, often dictates copper supply risk. If Peru cannot stabilise its permitting and informal mining framework, financing costs for future greenfield projects may rise. For now, Hudbay’s maintained guidance signals resilience, but repeated disruptions could eventually tighten the global copper balance.

Namibian Copper Assets Move Toward 2027 Restart as CCC Targets Brownfield Growth

Consolidated Copper Corporation

Namibian copper assets are moving back into focus as Consolidated Copper Corporation prepares to restart its Central Operations project in October 2027. The plan could add meaningful concentrate supply from Namibia at a time when copper buyers are seeking stable, diversified sources outside traditional high-risk jurisdictions.

Central Operations includes the Otjihase and Matchless underground copper mines. CCC expects 2028 to be the first full year of production, with copper concentrate output above 23,000t. Output is then expected to rise to more than 35,000t in 2029 and exceed 45,000t by 2033.

The restart also shows how brownfield copper assets can become strategically valuable in a tight global market. CCC is not building an entirely new mining system from scratch. Instead, it is rehabilitating existing operations, using established infrastructure, and scaling production as mining capacity improves.

Central Operations Highlights Namibia’s Brownfield Copper Potential

Namibian copper assets offer CCC a lower-risk route to growth because existing mines and processing infrastructure can shorten development timelines. In the initial phase, mining capacity will limit concentrate output more than concentrator capacity. CCC expects to use only one-third to one-half of the plant’s capacity at first, depending on how quickly ore production ramps up.

This approach reflects a broader shift in copper development strategy. As greenfield projects become slower, more expensive, and more exposed to permitting risk, brownfield restarts can offer faster supply additions. Namibia’s advantage lies in combining geological potential with a relatively stable operating environment.

CCC’s wider portfolio supports that strategy. The company also operates the Tschudi copper mine and owns Berg Aukas, a former zinc mine under redevelopment evaluation. At Tschudi, CCC has produced 6,946t of copper cathode since June 2024 from residual copper in an existing heap, including 3,237t in 2025.

Sulphuric Acid Supply Becomes a Strategic Constraint

Sulphuric acid supply is becoming a key cost and logistics issue for copper producers in Namibia and southern Africa. CCC has consumed 29,473t of sulphuric acid to date, including 15,432t in 2025. This highlights how copper output increasingly depends not only on ore and processing capacity, but also on reliable chemical supply chains.

Tschudi has a nameplate capacity of 17,000 t/yr of copper cathode. Production reached 6,000-7,000t in the first year and is expected to rise to 14,000-15,000t by year three or four. However, tight acid markets could influence operating costs, procurement strategy, and the pace of regional copper growth.

Namibia is also attracting broader copper development interest. Projects such as Koryx Copper’s Haib and New Horizon Copper’s Kombat mine show that the country is building a more visible position in the African copper pipeline. As buyers look for supply diversification, Namibia’s ability to provide regulatory stability and faster project execution could become a competitive advantage.

The Metalnomist Commentary

CCC’s restart plan shows why brownfield copper assets are becoming strategically important in the energy transition supply chain. Namibia’s opportunity is not only geological; it is also about infrastructure, policy stability, and secure inputs such as sulphuric acid.

Grupo Mexico Reports Strong 3Q Earnings Boosted by Copper Production and Strong Prices

Grupo Mexico

Grupo Mexico, a prominent conglomerate with interests in mining, rail, and infrastructure, has reported a significant increase in earnings for the third quarter of 2024, driven by higher copper production and robust sales prices.

The company produced 280,900 metric tonnes (t) of copper in Q3 2024, marking a 10.6% increase from the same period last year. Copper sales also saw an 8.2% rise, reaching 275,070t. This surge in production and sales comes as copper prices continue to climb. The average copper price for the quarter was $4.23 per pound, up 12.2% from the previous year, according to Comex data.

Strong Mining Division Performance

Grupo Mexico's mining division, represented by its subsidiary Americas Mining, experienced a strong performance with a 17.8% increase in sales, reaching $3.2 billion. Profits for the division surged by 55%, totaling $864 million. Despite a rise in the cost of sales (up 5.4% to $1.4 billion), the company’s profit margins remained robust.

The company’s overall profits reached $1 billion for the quarter, a 44% year-over-year increase, with revenues climbing 13.4% to $4.13 billion.

Key Mining Operations

The increase in copper output can be attributed to stronger production from Grupo Mexico’s mining operations in Peru and Mexico, particularly at the Toquepala, Buenavista, Cuajone, and Caridad mines. These mines played a crucial role in boosting the company's copper yield.

"Grupo Mexico was able to benefit from a favorable copper price environment which, combined with excellent production levels and stringent cost control, translated into excellent financial results, particularly from the mining division," the company stated.

Zinc and Molybdenum Performance

Grupo Mexico also saw significant improvements in zinc and molybdenum production during the quarter. Zinc production nearly doubled, reaching 31,080t, driven by the Buenavista Zinc concentrator. Zinc sales also rose by 50%, amounting to 37,355t. Zinc prices were up 14.5%, averaging $1.26 per pound in Q3.

Molybdenum production rose by 6%, reaching 7,270t, while sales saw a 5.6% increase to 7,326t.

Americas Mining and Global Expansion

The Americas Mining division, a key subsidiary of Grupo Mexico, oversees operations through Southern Copper in Mexico and Peru, as well as Asarco in the United States. These subsidiaries have been critical to the company’s solid performance in Q3 2024.

Grupo Mexico's diverse mining operations, strict cost controls, and favorable commodity prices have positioned the company for continued growth in the coming quarters.

Barminco to Exit Khoemacau Copper Mine as MMG Plans Major Expansion

Perenti Mining

Australian mining contractor Barminco will exit operations at the Khoemacau copper mine in Botswana on 30 June 2025. The withdrawal follows a strategic decision by parent company Perenti based on financial performance shortfalls. Despite playing a critical role since the mine’s 2019 startup, Barminco did not meet internal performance targets to justify its continued involvement in the project.

Barminco’s exit marks a turning point for the Khoemacau project, now fully controlled by Chinese mining company MMG, which acquired the asset in March 2024. Under the exit terms, Barminco will sell all of its mining equipment on site to MMG, signaling a full operational handover. This development aligns with MMG’s broader ambitions to scale copper production in Botswana, a region gaining importance for global copper supply diversification.

MMG Sets Aggressive Growth Targets for Copper Output

Khoemacau’s output reached 30,961 tonnes in 2024, contributing $34 million EBITDA to MMG during its first quarter of ownership. MMG now plans to raise output to 43,000–53,000 tonnes in 2025. More notably, the company has announced an expansion project scheduled for 2026, targeting an annual copper output of 130,000 tonnes by 2028.

This aggressive production roadmap underlines MMG’s strategy to secure long-term copper supply amid global energy transition demands. Botswana’s political stability and proximity to southern African transport routes offer favorable conditions for scaling copper exports. With Barminco's departure, MMG gains full operational control and flexibility to execute its long-term plans.

Strategic Implications for African Copper Projects

The Barminco Khoemacau copper mine exit reflects broader trends in mining services consolidation and risk-based contracting strategies. While Barminco exits due to profitability issues, MMG's rapid operational expansion underscores the increasing value of tier-two copper jurisdictions like Botswana. As copper remains central to renewable energy infrastructure, the industry's focus on Africa will likely intensify.

Other Chinese mining firms may follow MMG's lead in acquiring and scaling African copper assets, particularly as supply concerns grow across traditional producers. The Khoemacau expansion could also attract infrastructure investment and regional supply chain development.

The Metalnomist Commentary

Barminco’s exit signals a shift in risk appetite among mining contractors, while MMG’s expansion bets on rising long-term copper demand. As Botswana positions itself as a rising copper player, operational control and investment from majors like MMG will shape the region’s strategic metal output.

Rio2 copper acquisition adds Peru mine cash flow exposure

Rio2 Mining

Rio2 has agreed a Rio2 copper acquisition that pushes the company beyond gold. The Rio2 copper acquisition targets the Condestable underground operation in Peru. As a result, Rio2 gains near-term cash flow and stronger copper leverage.

Rio2 will buy 99.1% of Condestable from Southern Peaks Mining for $217mn in staged consideration. The package includes $80mn cash and $65mn vendor debt. It also includes $35mn equity and a $37mn deferred payment due in 2027–30. Meanwhile, Rio2 has lined up a $120mn equity raise to support the Rio2 copper acquisition.

Condestable sits about 90km south of Lima and runs an 8,400 t/d plant. The plant produces a clean concentrate with no processing penalties. Output is forecast near 27,000 t/yr of copper equivalent over five years. The mine also runs on 100% renewable hydropower.

Deal structure targets copper exposure and scale

The staged structure reduces near-term cash strain while locking in control. It also blends debt and equity to broaden funding options. Therefore, Rio2 can add a Peru copper mine without delaying other growth plans.

Rio2 expects the deal to lift copper revenue exposure to about 30% in the near term. That shift matters as copper prices hit record highs on the London Metal Exchange this week. Meanwhile, stable concentrate quality supports margin clarity for traders and smelters.

Condestable supports a broader Peru-Chile growth story

The mine complements Rio2’s operating footprint in Chile. It also returns the company to a familiar jurisdiction. Rio2 previously built and sold Rio Alto Mining in Peru. Closing will depend on customary approvals.

Rio2 also projects pro-forma annual EBITDA of $330mn once its Fenix gold mine reaches commercial production. As a result, management frames copper as a second cash engine. However, integration discipline will decide whether the acquisition expands returns or complexity.

The Metalnomist Commentary

This deal shows how mid-tier gold miners chase copper optionality without waiting for greenfield builds. However, funding terms and copper-cycle timing will shape investor confidence. Therefore, watch the equity raise pricing and early cash conversion at Condestable.

EU’s Copper Imports Increase in 2024 Despite Weak Demand in Germany

EU’s Copper Imports

Refined copper imports to the EU rose by 3.2% in 2024, led by Italy and Spain, despite falling demand in Germany.

Imports Rise, But Key Markets Show Strain

EU countries imported 1.71 million tonnes of refined copper in 2024, a 3.2% increase year on year, according to customs data. Italy remained the bloc’s top importer with 543,363 tonnes, representing 32% of total EU imports.

Germany, however, experienced a 13% drop in copper imports, falling to 413,245 tonnes. This reflects persistent challenges in Germany's industrial sectors due to rising energy prices and sluggish demand. The effects of the Covid-19 aftermath and Ukraine-related energy shocks have slowed recovery across EU economies.

Spain, Sweden, and the DRC See Significant Gains

Meanwhile, Spain increased its refined copper imports by 28%, reaching 142,231 tonnes, showing resilience in its industrial sectors. Sweden saw the largest year-on-year growth, with 119% more imports, totaling 107,794 tonnes.

On the supply side, Chile remained the largest exporter, delivering 307,885 tonnes to the EU — a 21% increase from 2023. The Democratic Republic of Congo (DRC) overtook Poland as the second-largest supplier, with 200,992 tonnes, up 11%. Together, Chile, DRC, and Poland made up 40% of the EU’s total refined copper supply in 2024.

Despite an overall 2.9% rise in global copper consumption, the EU market remains fragile. According to the International Copper Study Group, weak demand from automotive and construction sectors continues to weigh on European copper use.

The Metalnomist Commentary

The EU’s rising copper imports contrast sharply with the weakening of its core manufacturing sectors. Germany’s downturn reflects broader industrial deceleration, while southern and northern Europe appear more resilient. As the energy transition accelerates, copper sourcing will remain a geopolitical and industrial priority — and import trends are the first signal to watch.

Grupo Mexico Boosts Copper and Zinc Output in Q4, Plans $600mn 2025 Investment

Grupo Mexico

Buenavista Expansion and Strong Prices Lift Revenues Despite Toquepala Setback

Grupo Mexico increased its copper and zinc production in the fourth quarter of 2024, supported by operational gains at its Buenavista, Cuajone, and IMMSA units. Copper output reached 266,400 metric tonnes (t), up slightly from 264,300t in Q4 2023, while zinc production more than doubled, rising to 43,150t from 16,930t a year earlier.

Copper production growth was driven by a 12% increase at the Buenavista mine, complemented by moderate gains at IMMSA (+3.5%) and Cuajone (+2.1%). However, these increases were partially offset by an 11.4% decline at the Toquepala mine in Peru. Despite mixed volumes, copper sales rose by 2.2% to 253,250t, supported by a 13.4% year-on-year price gain to $4.22/lb, based on Comex data.

Zinc Production Surges with Buenavista Launch and Santa Barbara Growth

The standout performance in Q4 came from zinc. Grupo Mexico more than doubled zinc production following the start-up of its Buenavista zinc operation and improved throughput at Santa Barbara. Sales volumes surged by over 59% to 42,119t. The fourth-quarter average zinc price also increased by 22.1% to $1.38/lb, based on LME figures.

Molybdenum output fell slightly to 6,994t due to weaker performance at Caridad and Toquepala, with sales also down 2.1% to 7,008t. Despite this, Grupo Mexico’s mining division, operated under Americas Mining Corporation, reported Q4 revenues of $2.97bn, up 17.4%, while profit surged by 51.5% to $673mn.

2025 Capital Plan Targets Modernization, Tailings Efficiency, and Greenfield Growth

Grupo Mexico plans to invest over $600mn across its mining operations in 2025. Roughly half will fund modernization of existing mines and metallurgical facilities, while 31% will go toward improving water and tailings efficiency. The remaining investments will support long-term growth projects, including a new 120,000t/yr copper SX-EW plant in Arequipa, Peru. Construction is scheduled to start in 2025, with operations expected by 2027.

In total, the conglomerate’s fourth-quarter profit rose by 19% to $757mn, with revenues climbing 12.8% to $3.85bn. Grupo Mexico operates across mining, rail, and infrastructure sectors, with mining activities led by Southern Copper in Mexico and Peru, and Asarco in the United States.

Hudbay Constancia copper mine restart restores Peru production outlook

Hudbay Minerals

Hudbay Constancia copper mine restart restores production in Peru’s southern corridor after weeks of protest disruption. The Hudbay Constancia copper mine restart brings the mill back to full throughput and stabilises local operations. As a result, ore processing has resumed and the workforce is returning in stages, reducing immediate supply risk from this key asset. Hudbay now reiterates that 2025 copper output should remain within its guidance range of 117,000–149,000t.

Operational recovery at Constancia

Hudbay Constancia copper mine restart follows a temporary shutdown triggered by local protests and road blockades. The disruptions affected inbound supplies and outbound concentrate logistics, highlighting the vulnerability of Peru’s mining corridor to social unrest. However, full mill utilisation means Hudbay can work through short-term stockpiles and normalise concentrate deliveries. This recovery also reassures contractors and local communities that operations, employment and service contracts will continue.

Meanwhile, the restart reduces near-term risk premiums that traders might have attached to Peruvian copper concentrates. Concentrate buyers depend on predictable shipments from large, established mines like Constancia. Therefore, the quick Hudbay Constancia copper mine restart signals that management and authorities have restored minimum transport security, even if underlying social tensions persist.

Guidance intact and market implications

Hudbay’s ability to maintain its 2025 guidance after the Constancia restart sends an important signal to copper markets. Producers that reaffirm guidance after disruptions help anchor expectations around global mine supply. At the same time, recurring protests in Peru remind investors that social licence and community engagement remain critical for long-life copper assets. If future unrest escalates, similar interruptions could again tighten concentrate availability and raise treatment charge volatility.

For now, the restart suggests Hudbay has enough operational flexibility to absorb a short stoppage without revising its annual production plan. However, downstream smelters and physical traders will likely keep contingency plans in place for alternative concentrates. Market participants will monitor whether logistics remain stable through the next contract cycle and whether community negotiations deliver more durable solutions.

The Metalnomist Commentary

Constancia’s swift restart highlights both the resilience and fragility of Peru’s copper supply chain. Large mines can technically recover quickly, but repeated social disruptions erode confidence and increase the cost of capital for new projects. For copper buyers, the key takeaway is to diversify concentrate sources while recognising that Peru will remain a cornerstone of global supply for the foreseeable future.

Ivanhoe QIA $500mn funding strengthens African critical minerals pipeline

Ivanhoe Mines

The Ivanhoe QIA $500mn funding will inject fresh capital into one of Africa’s most important critical minerals portfolios. Ivanhoe Mines plans to raise $500mn from the Qatar Investment Authority through a 57.5mn share issue. As a result, the Ivanhoe QIA $500mn funding will support exploration, development and mining across copper, zinc, PGMs and other critical minerals in southern Africa.

Ivanhoe QIA $500mn funding underpins growth after Kamoa-Kakula setback

The Ivanhoe QIA $500mn funding gives the Canadian miner balance sheet strength at a sensitive moment. Ivanhoe will issue new shares at C$12 each, equal to about 4pc of its total equity. Therefore, the QIA secures a meaningful strategic foothold in a multi-asset African growth story.

Capital will help offset the impact of weaker guidance at the flagship Kamoa-Kakula copper complex in the DRC. The project now expects 370,000–420,000t of copper in concentrate this year. This range is almost 30pc below the initial 520,000–580,000t outlook, after Ivanhoe suspended mining in some areas because of seismic activity. However, Kamoa-Kakula remains one of the world’s lowest-cost, largest-scale copper growth engines.

Funding supports broader African critical minerals portfolio

The Ivanhoe QIA $500mn funding will not only stabilise Kamoa-Kakula but also advance other key assets. Ivanhoe intends to channel part of the proceeds into exploration and development of “critical minerals” across its portfolio. This portfolio includes copper, zinc, lead, germanium and platinum group metals.

In the DRC, the Kipushi mine has restarted as a zinc-copper-lead-germanium operation. The asset offers high-grade feed into markets sensitive to supply disruptions and ESG performance. Meanwhile, in South Africa, the Platreef project is moving toward first production in the fourth quarter. Platreef will add large-scale PGM, nickel and copper output, reinforcing Ivanhoe’s exposure to energy transition and automotive catalysts.

By backing this broader platform, the QIA diversifies beyond a single copper asset. Therefore, the Ivanhoe QIA $500mn funding represents a long-term bet on Africa as a core supplier of critical minerals. It also highlights the growing role of Gulf sovereign wealth in shaping mining capital flows.

The Metalnomist Commentary

QIA’s entry confirms Ivanhoe’s position as one of the most strategically important miners in the African copper and critical minerals space. The funding cushions near-term production setbacks while keeping long-dated projects like Platreef and Kipushi on track. Market participants should watch how quickly Ivanhoe converts this capital into stable output growth, especially as copper markets tighten and geopolitical competition for African resources intensifies.

Jubilee Metals Boosts High-Grade Copper Production at Zambia’s Roan Plant

Jubilee Metals

Return of Stable Power Enables Processing of 1.6% Copper Feed at 45,000 t/month Roan Concentrator

Jubilee Metals Group has ramped up high-grade copper production at its Roan concentrator facility in Zambia, marking a recovery from earlier power-related disruptions. The London and Johannesburg-listed company confirmed the restart of steady operations after overcoming national grid instability that affected output in the first half of the 2025 financial year.

Following a period of inconsistent power supply, Jubilee has begun processing new higher-grade copper feed with a copper content exceeding 1.6%. This is nearly double the concentration previously processed at the Roan site, signaling a substantial uplift in output potential for the coming months.

High-Grade Feed to Accelerate Production Recovery

Jubilee expects the improved copper grades to significantly increase recovery rates and monthly production volumes. With a processing capacity of 45,000 tonnes per month, the Roan facility is now well-positioned to recapture the production lost during power outages.

The enhanced feed quality is part of the company’s broader strategy to maximize output from its Zambian copper portfolio, while maintaining operational resilience. The company continues to leverage its proprietary processing expertise to recover metals from waste and tailings efficiently.

This development underscores Zambia’s importance as a regional copper hub and reflects growing investor confidence in Jubilee’s expansion across southern Africa.

Battery Metals Mining Diesel Disruption Raises New Supply Chain Risk

Battery Metals Mining

Battery metals mining diesel disruption could become an immediate operational risk if the Middle East fuel crisis continues to restrict diesel and gasoil flows. Mining operations that rely heavily on diesel for haulage, transport, drilling, and remote-site activity are the most directly exposed.

The pressure will not affect every part of the battery supply chain equally. Upstream mining faces the clearest fuel availability and cost risk, while refining and processing may feel the impact later through logistics delays, higher freight costs, and reduced primary feedstock availability.

Battery metals mining diesel disruption is most relevant for parts of southern Africa, Australia, and southeast Asia. These regions host major copper, cobalt, lithium, and nickel operations, but their fuel exposure differs sharply by power source, transport route, and mine configuration.

Southern African Copper and Cobalt Face Fuel Logistics Pressure

The DRC and Zambia could face early pressure if diesel flows remain disrupted. Ports in South Africa and Tanzania reportedly had around two months of diesel stock moving inland, but mining operators may need to reduce fuel use by mid-April if the Strait of Hormuz does not reopen soon.

The risk is significant because the copper-cobalt belt depends on diesel for logistics, open-pit haulage, mine-site activity, and some ore concentration processes. The DRC relies heavily on hydroelectricity for power, but diesel generators remain important in areas with limited grid access and for backup supply.

Zambia also plays a crucial logistics role between the copperbelt and key export ports, including Durban. Fuel shortages along these routes could slow truck movements, disrupt concentrate and cathode shipments, and add costs across copper and cobalt supply chains.

Australia Lithium and Indonesia Nickel Show Different Exposure Profiles

Australia appears acutely exposed because it imports most of its diesel from Asia, which in turn depends heavily on Middle East supply. The country has already lowered fuel standards in preparation for supply chain disruption, while cancelled fuel shipments have raised concerns about supply from the second half of April.

Hard-rock lithium mining in Australia could be one of the most fuel-sensitive parts of the battery metals chain. Major spodumene operations such as Greenbushes, Pilgangoora, and Mt Marion rely on diesel for haulage, drilling, and remote-site logistics, even though crushing, grinding, and concentration use more electricity.

Indonesia’s nickel sector is more insulated from immediate fuel disruption because many processing operations rely on captive coal-fired power. However, nickel mining still needs diesel for extraction and internal logistics, while the sector remains exposed to sulfur, sulfuric acid, shipping, and broader energy cost risks.

The Metalnomist Commentary

Battery metals mining diesel disruption shows that energy security is now part of critical mineral security. The market often focuses on ore grades and processing capacity, but fuel logistics can decide whether copper, cobalt, lithium, and nickel supply actually reaches the next stage of the value chain.

Peru’s Tia Maria Copper Project Continues to Face Delays

Southern Copper's Tia Maria project in Peru remains delayed despite efforts by the government to push it forward, according to mining and energy minister Romulo Mucho Mamani. "In 2024, we have attempted in every way to get Tia Maria off the ground, but it will take a bit longer," Mamani said, referencing local opposition to the project. 

Tia Maria, with an estimated cost of $1.4 billion and a projected capacity of 120,000 metric tonnes per year, has faced community resistance since 2009. Protests over the years have resulted in deaths and injuries, though their intensity has waned in recent years. 

Mamani noted that getting the project started is "a matter of time" as conditions are already in place. In addition to Tia Maria, the government plans to approve two other mining projects in 2024, including Zafranal and Pampa de Pongo.

Torq and Gold Fields Partner on Chilean Copper-Gold Project

In a significant development for the mining industry, Canadian mining company Torq Resources has announced a partnership with Gold Fields to develop the Santa Cecilia copper-gold project in Chile. The companies have entered into a non-binding agreement to form a joint venture aimed at exploring and developing the 3,250-hectare property located in southern Chile.

The agreement includes a two-stage option for Gold Fields to acquire up to 75% of the shares in the Santa Cecilia project by investing $48 million over a maximum period of six years. This strategic partnership is expected to leverage the expertise and resources of both companies to advance the project efficiently.

The companies plan to finalize a definitive agreement by mid-November, marking a significant step towards the development of the Santa Cecilia project.

Chile, recognized as the world's largest copper producer and home to some of the largest copper reserves globally, presents a promising location for this venture, according to the US Geological Survey.

Ivanhoe restarts Kipushi Zn, Cu mine in DRC

Canadian mining firm Ivanhoe Mines has completed construction and produced first concentrate from its Kipushi mine concentrator in the Democratic Republic of Congo (DRC), it said on Tuesday, 31 years after the Kipushi mine was placed on care and maintenance.

The mine, which produces zinc, copper and lead among other metals, was initially expected to return to production in the third quarter of this year.

The first ore was delivered into the Kipushi concentrator on 31 May, with the first concentrate produced on 14 June. This was "delivered substantially ahead of schedule", Ivanhoe founder Robert Friedland said. A ramp-up is now anticipated in the third quarter. Moreover, a debottlenecking programme is under way to increase the Kipushi concentrator's processing capacity by 20pc to 960,000 t/yr.

Kipushi's production guidance for this year is set at 100,000-140,000t of zinc in concentrate. Production is expected to average 278,000 t/yr of zinc in concentrate over the first five years, making Kipushi the largest zinc mine in Africa and fourth-largest globally, the company said.

Ivanhoe has recently signed offtake agreements with China's Citic Metal and global trading firm Trafigura, with further agreements expected in the coming months.

Ivanhoe's other projects in southern Africa include the expansion of the Kamoa-Kakula copper complex and exploration of the Western Foreland, both also in DRC, and the construction of the tier-one Platreef platinum group metals project in South Africa. The Kamoa-Kakula project is also months ahead of schedule, after it processed its first ore on 26 May.

US Venezuelan Critical Mineral Licences Open Sanctions Path for Mining Investment

US, Venezuelan

US Venezuelan critical mineral licences have created a new legal route for mineral investment and operations in Venezuela under strict sanctions guidelines. The US Treasury Department issued new and amended general licences on 27 March, allowing limited mineral-related activities and contingent investment agreements.

The licences permit the supply of certain items and services for minerals operations. They also allow negotiations and contingent contracts for investment in Venezuela’s minerals sector, including certain contracts with state-owned miner Minerven if governed under US law.

US Venezuelan critical mineral licences reflect Washington’s attempt to reconnect parts of Venezuela’s resource sector with US-linked investment. However, the opportunity remains complicated by illegal mining, weak infrastructure, political risk and security concerns in key mineral regions.

Venezuela’s Mineral Potential Comes With High Execution Risk

Venezuela is believed to hold strategic resources including copper, nickel, columbite-tantalite and uranium, although available public data do not provide clear reserve volumes. The Orinoco Mining Arc in southern Bolívar state is one of the country’s richest mining regions, with deposits of coltan, bauxite, gold and other metals.

The Orinoco Mining Arc has been designated as a strategic development zone, but the region remains difficult for formal investors. Illegal mining, mineral smuggling, money laundering and the presence of non-government armed groups create serious operational and compliance risks.

Some public-private partnerships already operate in coltan-rich areas, while Venezuela’s armed forces also maintain mining activity through Camimpeg. These structures add further complexity for any foreign company evaluating due diligence, security and legal exposure.

Sanctions Relief Could Support Critical Mineral Strategy

US Venezuelan critical mineral licences come as the US seeks more diversified sources of technology and defense-related minerals. Venezuela’s potential resource base could attract interest if companies can manage sanctions compliance, contract structure, security and infrastructure constraints.

The new licences also follow Venezuela’s effort to open its mining sector to more investment. The national assembly passed a new mining law in an initial vote on 9 March, signalling a policy push to revive resource development.

Still, economic instability remains a major obstacle. Venezuela continues to face currency weakness, very high inflation and years of underinvestment across industrial infrastructure. These conditions mean sanctions relief alone will not quickly convert mineral potential into reliable supply.

The Metalnomist Commentary

The US Venezuelan critical mineral licences are strategically important, but they do not remove the hard risks on the ground. Venezuela may hold valuable minerals, yet the real test will be whether legal access, security, infrastructure and transparent sourcing can be aligned.

Mercedes-Benz Opens Lithium-Ion Battery Recycling Plant in Germany

Battery Recycling Plant

Mercedes-Benz has inaugurated its advanced lithium-ion battery recycling facility in Kuppenheim, southern Germany, marking a significant step in its mission to establish a closed-loop system for critical minerals essential for electric vehicle (EV) production.

The new plant aims to process 2,500 metric tonnes per year of active and inactive materials from shredded battery modules. The active material, known as black mass, contains high-value critical minerals such as nickel, lithium, and cobalt. These will be refined and reused to produce over 50,000 battery modules annually for Mercedes-Benz's EV lineup.

Innovative Recycling Process

The facility utilizes a cutting-edge mechanical-hydrometallurgical process, which Mercedes-Benz claims can recover more than 96% of battery-grade critical minerals from spent lithium-ion batteries. The mechanical phase sorts and separates inactive materials like plastics, copper, aluminum, and iron. Meanwhile, the hydrometallurgical phase processes the black mass to extract critical minerals for reuse in battery production.

Sustainable Operations

Mercedes-Benz's Kuppenheim facility is powered entirely by green electricity, incorporating a photovoltaic system with a peak output of over 350 kilowatts. This aligns with the company's broader commitment to sustainability and reducing carbon emissions.

Technology Partnership with Primobius

The plant was developed in collaboration with Primobius, a joint venture between Australian process technology innovator Neometals and German engineering firm SMS. Mercedes-Benz's subsidiary Licular spearheaded the project, leveraging Primobius' expertise to implement cutting-edge recycling technologies.

Future Expansion Potential

While the Kuppenheim plant represents a significant milestone, Mercedes-Benz is cautious about scaling operations further. A spokesperson highlighted that production volumes could expand in the "medium to long term," contingent on insights gained from the facility’s initial operations.

This recycling initiative underscores Mercedes-Benz's dedication to creating a sustainable supply chain for critical minerals, enhancing EV production, and reducing environmental impact.