CUDECO 'OVERWHELMED' BY CHINESE SMELTER DEMAND
28 November 2014, Written by Nick Nichols
GOLD Coast copper miner CuDeco has secured a deal with a Chinese smelter to take its native copper ore, describing the rush of interest in the product as “overwhelming”.
CuDeco says 170 tonnes of ore has already been shipped for test work.
“The demand for the first shipment was so high that the buyer paid $500,000 to secure the furnace and smelter test work and to purchase the total shipment,” says chairman Wayne McCrae in a statement to the ASX (pictured).
“The balance of funds are to be paid within seven days of completion and provision of the results of the test work,” he says.
The news comes a week after CuDeco announced the successful testing of a copper ore shipment to Glencore’s nearby Ernest Henry Mine.
Cudeco says the Chinese smelter and furnace test work is expected to be completed in mid-December.
“The company has numerous offers for long-term purchases of the native copper, but will wait for the outcome of the test work before proceeding with any long-term offtake agreements.
The company says it had been overwhelmed by the number of smelters and buyers that had applied and inspected the shipment for test work.
“The native copper product is in high demand from smelters due to its clean nature,” says CuDeco.
“It contains very little impurities or pollutants, and no deleterious materials of environmental concern. This was very appealing to smelters.”
CuDeco’s shares have risen from two-year lows around $1.10 to trading as high as $1.48 today.
Author: Nick Nichols