Japan’s JX Nippon Mining & Metals Corporation has reached a basic agreement with Mitsui Mining & Smelting Co Ltd (Mitsui Kinzoku) and Mitsui & Co Ltd, its joint investors in the Caserones copper mine in Chile, on the transfer to it of all their rights and interests in the mine (Mitsui Kinzoku 25.87%, Mitsui & Co 22.63%).
JX Nippon and Mitsui Kinzoku acquired mining rights and interests in Caserones in 2006 through their venture firm Pan Pacific Copper Co Ltd (transferred to Nippon Caserones Resources Co Ltd in April 2020). The two firms have been developing the Caserones project ever since, and in 2010 were joined by Mitsui & Co to form a three-company operation. The JX Nippon statement says “the project faced difficulties early on, with construction delays and swelling construction costs. Today, however, having achieved stable production and profitability, the mine is entering a new phase toward further boosting production volume.”
In light of this situation, discussions among the three companies about how to proceed from here made it clear that Mitsui Kinzoku would be giving priority to use of its management resources for other businesses, with Mitsui & Co revising its metal resources business portfolio, that the best way forward was for management of Caserones to become the full responsibility of the JX Nippon.
“The copper concentrate from the Caserones Copper Mine is a valuable resource for the JX Nippon Mining & Metals Group smelting and refining facilities. As the copper grade of ores worldwide declines and impurities are on the increase, the value of the high-quality and clean Caserones ores is rising. Obtaining such excellent copper concentrate is seen as of key importance for the company’s copper smelting and refining business, the core of the metal supply chain from upstream raw material ores to the downstream advanced materials, and including recycling.”
As it takes over full responsibility for the Caserones copper mine, JX Nippon says it will proceed with already devised plans to invest in automation at the mine, taking advantage of IoT technology, “while further stepping up exploration efforts in areas around the mine with the prospect of substantial mineral reserves, working to maintain and expand production volume and extend the mine lifetime.”
The company told IM: “We are considering active introduction of IoT technology, which is one of the strengths of Japan, for example, introducing advanced automatic control programs, image analysis, remote control system of the operation, and predictive diagnosis of equipment and facilities through monitoring the condition of them. Some of these initiatives have already started. Although automation of trucks isn’t included in these initiatives yet, it will be considered as a next step.”
