Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Metso will supply crushing, screening, grinding and filtration equipment to Aguas Teñidas Mine, part of Trafigura Mining Group, in southwestern Spain. The delivery will be completed during the second quarter of 2014. The value of the deal, the fourth one between the two companies, will not be disclosed. The order is included in Metso Mining and Construction’s third quarter 2013 orders received.
The 2.2 million tons per year underground mine and concentrator produces copper, zinc and lead concentrates, also containing limited amounts of gold and silver. The mine’s owner, Trafigura Mining Group, is planning to invest over EUR 300 million in the asset over the next two years, creating one of the largest mining operations in Spain with the highest standards of production and innovative technology. As a result of this expansion, the life of the mine is expected to be extended to 15 years.
Recent exploration has discovered sufficient mineral seams to justify expansion. Because of this, a new treatment plant will be built over the next 24 months. The new plant can process twice the current amount of ore each year. The ore is exported from the ports of Huelva and Algeciras to northern Europe.
