The US has its first new copper producer in a decade

According to Mining News Pro - Pumpkin Hollow is reading for its first shipment of concentrate and first revenue in the coming weeks, owner TSX-listed Nevada Copper said on Monday.

CEO Matt Gili said that it was a “transformational moment” for Nevada Copper, which only 16 months ago took a construction decision.

“. . . it is a remarkable achievement to have reached this point on schedule and it speaks to the commitment of our team and the support of our shareholders and stakeholders,” he said in a statement.

Ramp up of the underground mine to full commercial production remains under way and will continue into the first half of next year. The underground operation will produce 65-million pounds a year of copper-equivalent at an all-in sustaining cost of $1.86/lb, with possibilities for an expansion.

Its current mine life is 13.5 years of reserves, with a further 636-million pounds of inferred resources.

“Pumpkin Hollow has multiple avenues for growth, including an advanced-stage, large-scale openpit project and our significant regional exploration targets,” said Gili.

As Pumpkin Hollow ramps up, the US copper production is set to grow by 2% in 2020, analysts at Fitch Solutions say in a note, issued on Monday.

The organisation, meanwhile, noted that  US miners were positioning themselves for long-term recovery in global demand.

"US copper miners are better positioned financially than operators in other markets , having worked to cut operating costs and increase profitability over recent years.

For example, in March 2019, Freeport-McMoRan used a portion of its cash holdings to redeem all $1-billion of its outstanding senior notes due in 2020 and made a $200-million prepayment on the Cerro Verde credit facility. This reduced total debt to $9.9-billion from $11.1-billion and would lower Freeport`s future interest costs in the coming quarters.

"We believe the company is now better suited to take advantage of the upside as they have room to invest in brownfield expansions at its US operations," said Fitch.

Freeport currently plans to begin first production at its Lone Star project in the fourth quarter of next year, producing about 90 000 t/y.