New copper mining project gearing up for maiden concentrate export
The maiden shipment of copper concentrate from a newly commissioned project launched recently in Al Sharqiyah North Governorate, has been delayed due to a technical snag at the plant, the company behind the venture announced on Monday.
Al Hadeetha Resources LLC, which is 51 per cent owned by Australian-based miner Alara Resources, said a ‘tailing filter press’ at its 1 million tonne per annum (mtpa) capacity copper concentrator plant at the heart of its Al Wash-hi Majaza license, has not been performing to its optimal capacity.
Consequently, delivery of the first shipment of copper concentrate, originally scheduled to take place during April 2024, has been deferred, it noted.
Global commodities group Trafigura is the offtaker of copper concentrate from the project under an agreement signed with Al Hadeetha Resources committing all output for a period of eight years from the start of production.
Pricing is based on the official London Metal Exchange cash settlement quotation for Grade A copper at the time of delivery. Commissioning of the project began earlier this year – the first by an international mining firm to exploit copper and associated gold resources since the enactment of a revamped mining law in the country.
At full production, the venture is expected to herald a new wave of copper mining in Oman amid a rapid uptick in global demand for the metal.
Commenting on the technical snag that has forced a delay in the export of the first shipment of concentrate from the project, the company explained: “The copper concentrator plant was successfully commissioned, with low-grade ore initially being fed into the plant to produce a low-grade copper concentrate, with the intention of increasing the grade of the ore feed over the initial weeks of operation until sale-grade concentrate was produced.
The tailing filter press, while operational, has not performed to its design capacity, slowing the ramp-up phase of the plant. Engineers are working on the problem and a resolution is expected.
This issue has put back the sale of first copper concentrate from April 2024. A revised expected first concentrate sale target will be announced when known,” it added in a statement.