644.098 tons Copper in 2011

Indonesia’s copper production is predicted to decrease by 36% to 644.098 tons in 2011. The downtrend will continue in 2012 when the production is estimated at only 609,171 tons. The output decreases because any of the national copper producers, PT Newmont Nusa Tenggara (NNT), just secured approval to expand land for mining activity of the sixth and seventh phases.

The production is predicted to start increasing after 2013 and so on. The production of copper may reach 899,923 tons in 2013, rising by 47% from 2011 and 2012.

Most of the copper produced in Indonesia has been destined to the export. The export volume was 915,254 tons in 2010 and is estimated at 579,688 tons in 2011 and 548,254 tons in 2012.

In the meantime, PT Freeport Indonesia (PTFI) in the second quarter and first semester report disclosed that the US-based company produced 1,917 million pound of copper up to June 2011, compared to 1,859 million tons in the same period last year.

Papua contributed 545,000 pounds to the total copper production of Freeport in the first semester of 2011, compared to 555,000 pounds in the same period last year and the sales decreased to 543,000 pounds in the first semester of 2011 from 555,000 in the same period last year. In the term of the price, the price of copper resulting from the Cendrawasih land was US$4.23 per pound, higher than US$3.05 per pound in the same period last year.

Up to late 2011, Freeport targets to produce copper as much as 35 million pounds. Viewed from the target, the realized production remains far below the expectations.

Now, the US mining giant is preparing underground mining project in Grasberg Block Cave and Deep Mill Level Zone (DMZL). The development of infrastructure for DMZL has been executed in the fourth quarter of 2010 so that the project is expected to start producing late 2012 with the production around 7,000 metric tons of ores per day.

Up to June 2011, the volume of copper sold from Indonesia reached 265,000 pounds, compared to 259,000 pounds in the same period last year. It is not wrong if the government targets that national copper production would rebound in 2013 in line with the operation of mining facilities in the two major mining locations in Indonesia

Discussing Copper Issue 2011-2012

in Lisbon, Portugal, discussing Copper Issue 2011-2012, ICSG predicts that global smooth copper production would increase by 380,000 tons this year from 2010 when the deficit was 250,000 tons. The rising production is driven by the high price of copper and growing demand from end-users. It is also driven by the demand from industry, which continues to grow in 2011.

At the event attended by copper producers and users, the production of copper is expected to grow six percent in 2011, compared to 4.3% in 2010.

However, the forum is also realistic so that the target of the production is revised again in view of global uncertainties. ICSG observes factors so that the target needs revision. Among them are earthquake and Tsunami in Japan, political uncertainties in the Middle East and Africa, changes in financial policies and uncertain copper market dominated by China.

Finally, in view of the conditions, ICSG predicts that copper production would increase by 3.5% to 19.7 million in 2011 and the conditions are expected to change so that the production could grow by five percent in 2012.

Consumption of smooth copper is predicted to increase by four percent from last year to 20,000 tons. The consumption is expected to grow above four percent in 2012 following the improvement of global economic condition.

Copper Production would Increase Slightly in 2011

The International Copper Study Group (ICSG) predicts that copper production would increase slightly in 2011. Disaster in Japan, financial policy and political disturbance causes copper production to not increase significantly. In addition, the price remains flat, not down or up significantly. From September 2011 to January 2012, the price of copper at London Metal Exchange (LME) ranges from US$8,813.75 to 8,837.00 per ton.

In a report July 2011, ICSG disclosed that the market of smooth copper up to April 2011, reflected a production deficit up to 36,000 metric ton even though the smooth and ready-to-use copper, based on seasonal calculation, showed a surplus of 46,000 metric tons.

In the first four months of 2011, according to data presented by ICSG, copper consumption grew by 1.2% from the same period last year when the consumption decreased by seven percent because consumption in the world’s largest copper consumer, China, decreased by 40%.

Even though China recorded a decrease in demand for smooth copper, other countries booked an increase. The demand rose by 89% in Russia, 2.2% in European Union and 2.2% in the United States.

The United States and European Union continue to recover following the recession even though the growth is slower than last year. Regionally, demand for copper grew by five percent in Africa, 3.7% in America, 9.3% in Europe and 38% in Oceania but decreased by 2.8% in Asia.

ICSG also reported that copper production increased by two percent in the first four months of 2011 from the same period last year. The production of concentrates also rose by three percent, while the output of Solution Extraction-Electrowinning (SX-EW) decreased by 1.5%.

The data reflects an increase in production, compared to last year, because of operational obstacles, thus forcing Australia and Mexico to reduce their production. The production decrease was also visible in major copper producers, such as Chile, down by 1.4%, the United States (4.5%), Indonesia (18%) and Republic of Congo (16%).

Gold and Copper Mine in Indonesia

Strike ends at major gold and copper mine in Indonesia,Timika .- The workers of the mining company Freeport-McMoRan in Indonesia, one of the world's largest deposits of copper, will end a strike a week after the company and union reached an agreement. Freeport Indonesia reported that the workers return to their jobs Tuesday at the Grasberg mine, located in a remote mountainous area, and not continue the strike for another week as planned. The company also said it will begin to negotiate with the union on their wage demands. "An agreement was reached with the union to end the strike, which began on July 4 and caused the suspension of mining and extraction," said Freeport Indonesia spokesman, Ramdani Sirait said in a statement. This makes it "less likely" that the U.S. mining company declared force majeure on shipments of concentrates, after production was halted a week at the mine with the largest recoverable reserves of copper, a source of Freeport. Freeport agreed not to punish the leaders of the protest and give the workers their regular salary during the stoppage, which began last Monday. In return, the union agreed to revoke a letter it would extend the strike to July 18, it said. "It is agreed that employees return to his duties on July 12," the document. Both sides have yet to start wage negotiations. The union push to double the salaries of workers, who receive $ 1.50 per hour, the leaders say Freeport employees in other countries are 10 times that salary.

Mining Guide : Learn to Know About Mining

Mining guide : First think is we must Learn about what is mining?Simple answer ; Mining is the process of extracting minerals and various materials from the earth. Manganese, tantalum, cassiterite, copper, tin, nickel, bauxite (aluminum ore), iron ore, gold, silver, and diamonds are just some materials of what is mined. and Why Mine?We know Mining is a BIG money making business. Not only do mining companies prosper, but governments also make money from revenues. Workers also receive income and benefits. What is Principle of Mine? Mine is valuation of Manganese, tantalum, cassiterite, copper, tin, nickel, bauxite (aluminum ore), iron ore, gold, silver, and diamonds. What are the minerals and metals important used for?Minerals and metals are very valuable commodities. For example, GOLD is a important material for jewelry business. Gold It is also used to electronic industrial. Other example is Tantalum, Tantalum is used in cell phones, pagers, and lap-tops. Cooper and tin are used to make pipes, cookware,. and.... etc. Mine Valuation ?;is Calculation of quantities of ore and classification of ore in sight.As mines are opened by levels, rises, etc., through the ore, an extension of these workings has the effect of dividing it into "blocks." The obvious procedure in determining tonnages is to calculate the volume and value of each block separately. Prospective value ?is Extension in depth,origin and structural character of the deposit,secondary enrichment,development in neighboring mines;depth of exhaustion. Large scale mining versus small scale mining?1.Large scale mining usually involves a company with many employees. The company mines at one or two large sites and usually stays until the mineral or metal is completely excavated. 2.Small scale mining usually involves a small group of nomadic men. They travel together and look for sites which they think will yield gold or another valuable metal or mineral. Where does mining occur?Mining occurs in many places around the world, including the U.S. In South America, mining is particularly active in the Amazonia region, Guyana, Suriname, and other South American countries. In Central Africa, mining devastated a National Park called Kahuzi-Biega in the eastern Democratic Republic of Congo (DRC). South Africa is also very well known for mining diamonds. Mining also occurs in Indonesia and other S.E. Asian countries. Price of Metals?is recoverable % of the gross assay value or cost of production.Unfortunately for the mining engineer, not only has he to weigh the amount of risk inherent in calculations involved in the mine itself, but also that due to fluctuations in the value of metals.