The original Rio Tinto copper mine started operations in 1873, but the mining giant sold a majority of the mine in 1954. Subsequently, it sold off the remaining stake in the copper mine in Andalucía, Spain. The brownfield mine is presently owned by Atalaya Mining and has been transformed into a profitable venture with new equipment.
Atalaya Mining Chief Executive Alberto Lavandeira commented that it was tough to restore the ancient copper mine, but perseverance has paid off, and now the mining company is looking to expand in other parts of Europe. This could offer opportunities to mining contractors, including contractors from the UK.
It is estimated that the copper mine has reserves of 153 million tonnes, with about 0.45 per cent copper. Atalaya Mining confirmed that it would start copper production in 2020, by which time the pit would be ready to ensure safe, efficient and optimal production.
Atalaya Mining also showed interest in acquiring another mine in 2017, followed by a new acquisition in 2018. Lavandeira confirmed that if the company could get three mines over the next three years, it would consider listing on the London Stock Exchange.
Based on the third quarter results, Atalaya Mining showed an EBITDA of approximately €1.9 million, or £1.6 million. However, it incurred a loss of €1.5 million. The company contends that its books are healthy, though, and it will be able to sustain full production for the next 16 years, though it is trying to stretch it to 20 years.
Considering the current scenario, copper mining companies, including Atalaya Mining, will reap the benefits of the surprise US presidential election results. The copper price has surged after the result was declared. It is anticipated that Donald Trump will invest heavily in infrastructure, and this has caused the copper price to increase from about $225 a pound to over $268 a pound.