partner projects and provides advisory and support services
to Galena Asset Management, Trafigura trading desks and
trading partners.
JEREMY WEIR CEO, Mining Group
Trafigura’s Mining Group oversees mining operations in Europe, Latin America, Africa and Asia.
2.3mmt
0.6mmt
Ore extracted at MATSA mine (2013: 2.2 mmt)
Ore extracted at Catalina Huanca mine (2013: 0.6 mmt)
HIGHLIGHTS
• MATSA mine expansion plan nears completion • Official opening of Magdalena mine
• Copper ore production commences in the DRC.
We aim to grow our global mining operations and interests organically, primarily through increased efficiencies. Where there are specific opportunities we may also extend existing sites and develop new projects.
We also provide technical services to Trafigura and to affiliated companies, investments and also to trading partners. Our global team includes specialists from around the world. They conduct technical due diligence audits ahead of possible new investments or financing agreements. They also provide consultancy on technical, operational and financial performance issues.
Rather than pursuing growth for its own sake we target our capital at those projects where our approach can add value. This year we restructured the Mining Group to create an even leaner, more responsive organisation.
EXPANDING AND EXTENDING PRODUCTION AT MATSA
The Mining Group’s flagship operation is the Aguas Teñidas mine (MATSA) producing copper, zinc and lead concentrates along with some silver on the Iberian Pyrite Belt in Southwestern Spain.
We have put in place a EUR300 million, two-year expansion plan for the MATSA mine, which is now nearing completion. This includes a new treatment plant, which will almost double processing capacity from 2.3 to 4.4 million tonnes during 2015.
By the end of 2014, the expansion works on the treatment plant will be completed and it will be ready to begin operations. It is expected to be operating at full capacity by June, 2015.
Sotiel, a satellite mine near MATSA will provide additional ores from early 2015.
Geophysical surveys identified anomalies at a new location just a few kilometres from the main MATSA mine. Follow-up exploratory drilling confirmed this to be an exceptionally large and rich resource.
The Magdalena mine was officially inaugurated in September, 2014, and will start production in 2016. This is the first new mine to open in Spain in decades. Its deposits will extend the life of MATSA and its satellites beyond 20 years, safeguarding hundreds of jobs and securing valuable production for Trafigura’s Metals and Minerals trading division.
Copper oxide, Kalumines, DRC.
IMPROVED ECONOMIC VIABILITY AT CATALINA HUANCA, PERU Realising cost and production efficiencies at Catalina Huanca, Peru, was another important achievement this year. The mine produces copper and zinc concentrates with some gold and silver. This has always been a relatively expensive extractive source, primarily because of its remote location and limited mine-life. The Mining Group has been effective at increasing efficiency and lowering production costs at the mine.
Another important achievement at the mine location was receiving support from the local community, after years of opposition, for proposals for the development of a larger tailings facility.
These developments have improved the mine’s economic viability and helped to extend its productive life beyond ten years.
PROGRESS IN AFRICA
In Angola, we participate in the AEMR mining joint venture through DT Group. All four Angolan mining projects there are currently on standby while necessary basic infrastructure is introduced.
In the neighbouring Democratic Republic of Congo (DRC) we are co-developing Kalumines, a small copper property, with Congolese State-owned entity Gecamines in Katanga province. This mine produced its first ore in September, 2014. The success of this project may unlock other opportunities in the country.
TECHNICAL DUE DILIGENCE
Our technical team employs internationally renowned mining specialists. The team includes geologists, mining engineers, metallurgists, project management experts and mining industry veterans. They travel the world, providing assistance wherever it is needed.
In Brazil, Trafigura’s technical team is conducting intensive due diligence work in the iron ore sector. Impala Terminals’ iron ore export terminal, Porto Sudeste, has the capacity to handle over 50 million tonnes of iron ore annually. The facility will afford mid-tier producers significant logistics economies and access to international markets. The Mining Group’s technical team has been commissioned by Trafigura to conduct a series of technical audits to assess which producers are best suited to work with Impala Terminals and Trafigura’s trading teams in future.
In the US, the team is conducting analysis and evaluation on various development projects proposed by Bowie Resource Partners, Galena Asset Management’s coal producing joint venture asset. FUTURE PRIORITIES
Over the next 12 months we will continue to focus on our investment and exploration programme along Spain’s Pyrite belt, will look to implement our expansion plan at MATSA, and further develop our capabilities both in Peru and in the DRC.
Mining Infrastructure Manager Stuart Docherty inspects Kalumines stock piles, DRC.
RE PO R T O F T H E BO ARD O F D IRE C T O R S