Goals and key results: Historical record for Cupru Min in 2017
The company Cupru Min SA Abrud, controlled by the Ministry of Economy, has planned investments worth over RON 65mln for 2018, of which almost two thirds are focused on environmental protection. According to a press release published on the website of the Ministry of Economy, the main objective of the company, which holds approximately 60% of Romania’s copper reserve, is to complete the acid water treatment plant. Another objective is a better exploitation of the ore, through the recovery of rare metals such as molybdenum, as well as iron, the quoted document also shows. It is also estimated for 2017 a gross profit five times higher than that obtained in the previous year, i.e. RON 6.9mln.
Moreover, Economy Minister Gheorghe Şimon has met with Cupru Min Abrud management, with which he has discussed about the company’s investment and development strategy for the following period.
An aspect highlighted is the improvement of extraction yields and copper concentration in the extracted ore, by 2.7% over the last two years. Increasing copper content has a direct positive impact in company’s income. It also increased as a result of higher international quotations, as well as due to the more advantageous contracts concluded in 2017, the press release states.
“It is very important that the only copper producer in Romania can comply with its investment program, with the rules and laws on procurement and with the environmental rules. Likewise, the company must not forget the importance of human resources and work safety and not forget to reduce accidents and improve conditions and climate at work,” Minister Gheorghe Şimon said at the end of the meeting.
Cupru Min estimates for 2017 a record production of copper concentrate, the largest in company’s history, of 39,000 tons.
According to the business program for the period 2016 – 2018, Cupru Min plans to reach in 2018 a total value of mining products of RON 133mln (calculated at the quotation of USD 6,200/ton of copper and an exchange rate of RON 4.00/USD).
At global level, in 2017, amid economic downturn, a decline in consumption was recorded for most raw materials, thus discouraging significant price increases. However, copper becomes one of the most desired raw materials in the world, and investors’ interest is growing, being tempered only by the fact that the most indebted mining companies are willing however to keep this gem of the metal industry.
Experts believe that in 2018 copper price will grow, growth fed by the strong demand in China, expected to increase by approximately 2%.