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December 22, 2014

Mitsubishi and Mitsui to buy copper concentrates from Oyu Tolgoi mine

Mitsubishi Materials and Mitsui are set to diversify their procurement sources by acquiring 5,000t of copper concentrates from Mongolia's Oyu Tolgoi copper mine.

Oyu Tolgoi

Mitsubishi Materials and Mitsui are set to diversify their procurement sources by acquiring 5,000t of copper concentrates from Mongolia’s Oyu Tolgoi copper mine.

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As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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Oyu Tolgoi copper mine, which is located in Mongolia’s southern Gobi region, is operated by mining company Rio Tinto.

Mitsubishi Materials raw materials department general manager Tatsuya Inoue told Reuters: "We purchase more than 60% of copper concentrates from Chile and Peru and we want to lower the degree of dependence on South America."

Annually, Mitsubishi procures around 1mt of copper concentrates, of which 60%-70% is obtained from Chile and Peru.

Transported by rail in Mongolia and Russia to Vladivostok port and then by sea to a Japanese port, the first shipment from Oyu Tolgoi arrived at Naoshima Smelter and Refinery of Mitsubishi Materials in early December.

"Oyu Tolgoi’s deposits contain an estimated 2,700,000t of copper and 1.7 million ounces of gold."

Inoue added: "We have not made any decisions on contract, but we intend to talk with the producer about a long-term contract early next year."

Oyu Tolgoi, a combined open pit and underground mining project, is being developed as a joint-venture (JV) between Turquoise Hill Resources (66% ownership) and the Mongolia Government (34%).

Oyu Tolgoi’s deposits contain an estimated 2,700,000t of copper and 1.7 million ounces of gold.

Production at the mine, which has an anticipated lifespan of 50 years, began in 2013 and is scheduled to reach full capacity in 2021.


Image: Oyu Tolgoi mine in south Gobi. Photo: courtesy of Brücke-Osteuropa.

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
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