SMM Morning Meeting Minutes: On Friday evening, LME copper opened at $12,857.5/mt, fluctuated downward initially to touch a low of $12,817/mt, then fluctuated upward, with copper prices gradually rising to touch a high of $13,065/mt, before consolidating and finally closing at $13,060/mt, up 1.59%, with trading volume reaching 25,600 lots and open interest reaching 325,000 lots, overall showing bulls increasing positions. On Friday evening, the most-traded SHFE copper contract 2603 opened at 101,000 yuan/mt, fluctuated downward initially to touch a low of 100,340 yuan/mt, then the center of copper prices rose straight to touch a high of 101,820 yuan/mt, before fluctuating rangebound and finally closing at 101,490 yuan/mt, up 1.49%, with trading volume reaching 79,400 lots and open interest reaching 170,000 lots, overall showing bears closing positions.

Canadian mining giant Capstone Copper said on Friday that the largest union at its Mantoverde copper-gold mine in Chile had approved a new three-year labor contract, ending a strike that began on January 2 and paving the way for a return to normal production. Previously affected by the strike, the mine's production had fallen to about 55% of normal levels.

On June 13 (Friday), according to information disclosed by the International Finance Corporation (IFC) on Friday, it will provide a $400 million subordinated loan for the Reko Diq copper-gold mine in Pakistan. Previously, the IFC had already committed to financing $300 million for the copper-gold mine project, bringing the total financing scale for the project to $700 million. The estimated development cost for the mine is $6.6 billion. "The total estimated project cost is $6.6 billion, which will be financed through a combination of debt and equity." Other parallel lenders will provide the remaining debt financing. This type of loan, known as a subordinated loan, is typically repaid after other loans and helps absorb more risk. The Reko Diq copper concentrates, located in Balochistan, is one of the world's largest undeveloped copper-gold deposits. It is being developed by Barrick Gold, which holds a 50% stake in the mine, with the remaining shares held by the federal and local governments of Pakistan. The Reko Diq copper-gold mine is expected to commence production in 2028. Barrick estimates that the mine will generate free cash flow of up to $74 billion over its 37-year mining life.

According to the Mining Journal, the Ecuadorian government intends to implement a new mining tax aimed at bridging the fiscal gap, but it may deal a severe blow to the exploration sector. The proposed mining inspection fee (Tasa de Fiscalización Minera) is expected to generate $229 million in annual tax revenue for Ecuador, with the intention of strengthening technical and environmental monitoring of the industry. This tax applies to all levels of mining activities, except for small-scale mining. The Ecuadorian Mining Chamber (CME) has strongly criticized this move, stating, "This matter was never consulted with the industry, and we believe it represents a significant technical obstacle to the responsible and sustainable development of the mining sector." While acknowledging the need for enhanced state control and industry regulation, the CME has criticized the structure of the tax. It is levied per hectare, with different tax rates for projects at various stages. The CME claims, "For medium-to-large-scale mining projects, especially those in the exploration phase, this approach is not feasible." The final tax amount may exceed the exploration investment of the project, the CME added. "This makes regulation an obstacle rather than a tool." Ecuador's largest mining projects include Lundin Gold's Fruta del Norte gold mine and EcuaCorriente's Mirador copper-gold mine. Exploration The CME has also criticized the new tax for imposing additional financial burdens on non-revenue-generating exploration companies, which are in the most vulnerable growth phase. "Although we understand that, as an administrative fee, it does not require formal legal authorization, it must adhere to the constitutional principles of appropriateness, reasonableness, and equality. From its design, this fee is unrelated to the cost of the services it provides or the economic capacity of taxpayers, and it may have an extraordinary impact on exploration activities," the CME stated. The CME's analysis indicates that this fee will make Ecuador less competitive in exploration compared to other Latin American countries. Ecuador's fee is $11.5 per hectare, while Colombia's is $6.7, Chile's is $4.5, and Peru's is $3. "Ecuador is the most expensive country for exploration in the region, and the new tax makes this difference even more pronounced," the CME said. In 2024, exploration investment in Ecuador was $67 million, compared to $493 million in Argentina, $568 million in Peru, and $637 million in Chile. In other aspects, the cost of mine construction in Ecuador is relatively high. Although the country provides mining investors with the ability to sign investment protection agreements, thereby stabilizing their financial situations, its mining law adopts a floating royalty rate that varies between 3% and 8% depending on changes in metal prices. Under the current gold and copper prices, mining companies are facing the situation of the highest royalty rate.

According to a report on the BNAmericas website, the Vicuña mining district has attracted the attention of junior mining companies. It hosts the Josemaría and Filo del Sol copper-gold-silver projects, as well as the Lunahuasi and Los Helados copper-gold mines. The Vicuña mining district is located in the Andes Mountains, between the Atacama Region of Chile and the San Juan Province of Argentina, at an altitude of 3000-4500 meters. The harsh climate, lack of energy infrastructure, and logistical challenges have not deterred exploration efforts. However, these factors have not stopped Sendero Resources, which is exploring the Peñas Negras project, and Mogotes Metals, which is prospecting in Filo Sur. Mogotes Metals recently secured $7 million from the Braun family of Argentina to strengthen its prospecting efforts in the region. The most advanced project is the Vicuña Group, a joint venture between Lundin Mining and BHP, which owns the Josemaría and Filo del Sol projects. Additionally, there are the Los Helados and Lunahuasi projects of NGEx Minerals, covering an area of approximately 150 square kilometers. There are also hopes for downstream copper processing in the region. "We are trying to convince Argentina to build a copper smelter in San Juan Province," said Juan Rayo, director of local engineering firm JRI. Josemaría Josemaría is the most advanced project in the region. Currently, while awaiting permits, the joint venture is conducting detailed engineering studies and is researching the locations for a processing plant and shared infrastructure, including tailings storage facilities, roads, and power lines, to enable coordinated development with the Filo del Sol project, located 10 kilometers away. On June 3, the Vicuña Group announced that it had awarded a road maintenance contract to local company Zlato for the highway between Angualasto and La Majadita in San Juan Province. This road "will improve the stability of fuel, light vehicle, and critical material supply to remote areas, serving as a reliable and safe alternative to the current route to the field site in Guandacor, La Rioja Province," the company said in a press release. Filo del Sol As one of the company's projects, exploration work at Filo del Sol continues to advance, with the goal of submitting a technical report in Q1 2026. Vicuña Group plans to submit an application to include the Filo del Sol and/or Josemaría projects in the list of large-scale investment incentive plans (Rigi), with a combined investment of nearly $6 billion for these two projects. The projects have measured and indicated copper metal content of 13 million mt, 32 million ounces of gold, and 659 million ounces of silver, as well as inferred copper metal content of 25 million mt, 49 million ounces of gold, and 808 million ounces of silver. Los Helados This project, located in the Atacama Region, is the only one with nearby infrastructure, situated approximately 17 kilometers from the Caserones copper mine, which is 70% owned by Lundin Mining Corporation. As of now, the project has inferred copper metal content of 18.4 billion pounds (8.35 million mt), inferred copper metal content of 8.3 billion pounds, inferred gold of 10 million ounces, and inferred silver of 97.5 million ounces, making it another large project in the Vicuña mining district. Lunawasi However, Future Minerals' current focus is on advancing exploration of the Lunawasi project, while the company is considering various options, including mergers or acquisitions. The company estimates that the total transaction value of Lunawasi and Los Helados is comparable to that of Caserones, at approximately $3.3 billion. Last year, Caserones produced 124,761 mt of copper, while Filo del Sol is valued at $4.5 billion and Josemaría at $1.9 billion. However, the region faces significant challenges that require bilateral negotiations. While Argentina lacks infrastructure, Chile has better conditions in terms of mining logistics and infrastructure. Appropriate cross-border cooperation can reduce costs, increase water and energy supply, and enhance the region's competitiveness as a new source of critical minerals.

ATEX Resources Inc. announced that the sixth hole (ATXD28) of Phase 5 drilling at its Valeriano copper-gold mine in the Atacama Region of Chile intersected ore over 1,000 meters. The specific intersection details are as follows: Hole ATXD28 intersected 1,090 meters of ore at a depth of 834 meters, with a copper equivalent grade of 0.81%, comprising 0.56% copper, 0.32 g/t gold, 1.8 g/t silver, and 0.0057% molybdenum. This includes mineralization with a thickness of 88 meters and a copper equivalent grade of 1.03% (0.78% copper, 0.35 g/t gold, 2.4 g/t silver, and 0.0018% molybdenum), as well as a thickness of 281 meters and a copper equivalent grade of 0.93% (0.55% copper, 0.53 g/t gold, 3.3 g/t silver, and 0.0004% molybdenum). Hole VALDD13-014, located 160 meters south of the ATXD hole, intersected 272 meters of ore with a copper equivalent grade of 0.93% (0.72% copper, 0.28 g/t gold, 1.52 g/t silver, and 0.0021% molybdenum). Hole ATXD24, located 170 meters south of the ATXD hole, intersected 670 meters of ore with a copper equivalent grade of 0.84% (0.60% copper, 0.24 g/t gold, and 0.011% molybdenum). The orebody remains uncontrolled along strike to the southeast and north-west China. The analysis results of other drilling samples from Phase 5 will be completed in July. The company will update its resource estimates in the second half of 2025 (H2). The company hopes to commence Phase 6 drilling as early as September. To date, nine holes have been completed in Phase 5 drilling, with a total footage of 16,600 meters.

According to a report from Mining.com, SolGold, a company primarily engaged in exploration and development in Ecuador, announced that it would voluntarily delist from the Toronto Stock Exchange starting June 18. The miner will continue to be listed on the London Stock Exchange and is also considering a secondary listing on the Australian Securities Exchange (ASX). SolGold, founded in Australia and currently headquartered in London, recently appointed Dan Vujcic as its new CEO. The former investment banker at Morgan Stanley and Citigroup, and most recently the CFO of MAC Copper, stated in an interview earlier this year that the ASX was a "natural home" for the company's copper-gold assets. The company is backed by mining giants including BHP and Newmont. It is currently advancing the development of its Cascabel copper-gold project in northern Ecuador. The project is expected to commence development as early as 2028, three to four years ahead of the previous schedule. The latest strategy involves open-pit development initially, followed by a transition to underground mining. SolGold believes that the scale of Cascabel positions it as a multi-generational asset, capable of ranking among the top 20 copper-gold mines in South America. Strategic Adjustments Accelerating the development plan is part of a broader restructuring by the company, which includes establishing a subsidiary to hold its exploration assets. The company claims to hold over 89 licenses within a high-potential copper-gold target area spanning 3,000 square kilometers. This move comes at a time when the global copper market is tightening, driven by growing demand due to copper's critical role in electrification and the scarcity of new discoveries. SolGold hopes that this restructuring and accelerated development will garner greater investor support, especially amid geopolitical instability and tariff fluctuations affecting global supply chains.

According to a report from Mining.com, Harmony Gold, South Africa's largest gold producer, has agreed to acquire MAC Copper for US$1.03 billion, accelerating the company's strategic shift towards copper through a key asset in Australia. The all-cash acquisition will give Harmony full ownership of MAC Copper's sole asset, the CSA copper mine located in central-western New South Wales. CSA is Australia's highest-grade and oldest operating copper mine, dating back 150 years. With a mining depth reaching 1,900 meters, CSA is one of Australia's deepest underground mines. Harmony has offered to acquire MAC's shares at US$12.25 per share, a 20.7% premium over MAC's latest closing price on the New York Stock Exchange. MAC's board of directors unanimously supports the acquisition. Like Newmont and Barrick Gold, Harmony is also implementing a diversification strategy. The company is considering entering the copper market, a metal crucial for electric vehicles and power grid infrastructure. This transaction will expand Harmony's copper assets in Australia, following its purchase of the Eva copper mine project in Queensland in 2022. The Johannesburg-based mining company aims to bring Eva into production by 2028. With the addition of CSA and Eva, Harmony hopes to achieve an annual copper production of 100,000 mt within five years. Last year, CSA alone produced 41,000 mt of copper. Outside of Australia, Harmony also owns the Hidden Valley gold mine in Papua New Guinea and co-owns the Wafi-Golpu copper-gold mine with Newmont. The company is moving away from a single-focus gold mining model, as mining metals in South Africa has become increasingly complex and costly.

According to a report on Mining.com, Imperial Metals has achieved significant results in diamond drilling at the Mount Polley mine in south-central British Columbia, Canada. The 2025 drilling program focuses on the C2 ore block, which is adjacent to the south of the active Cariboo open-pit mine. The ongoing work aims to fill gaps in historical drilling data to support the expansion design of the pit and to verify the presence of deep high-grade ore bodies. Preliminary drilling intersected 152.5 meters of ore at a depth of 282.5 meters, with a copper grade of 0.46% and a gold grade of 0.97 g/mt. Another intersection at 285 meters deep revealed 85 meters of ore with a copper grade of 0.67% and a gold grade of 1.56 g/mt. Two other holes also encountered significant mineralization, with gold grades as high as 1.1 g/mt, copper grades of 0.79%, and substantial thicknesses. Three years ago, the company resumed production of copper and gold at the Mount Polley copper mine.

Pampa Metals announced that extensive high-grade copper-gold ore was encountered in drilling at the central porphyry system of its Piuquenes project in San Juan Province, Argentina. The PIU-08 drill hole was primarily designed to verify the western (near-surface) and eastern (deep) extensions of the aforementioned orebody. The hole intersected 570 meters of ore at a depth of 188 meters, with a copper grade of 0.39%, gold of 0.24 g/mt, and silver of 2.69 g/mt. Within this, 298 meters of ore was intersected at a depth of 192 meters, with a copper grade of 0.54%, gold of 0.39 g/mt, and silver of 3.45 g/mt. The drilling confirmed the eastward extension of the central deposit at Piuquenes. According to the company's announcement on March 11, 2024, the PIU01-2024 drill hole, located 240 meters southwest of PIU-08, intersected 304 meters of ore with a copper grade of 0.48%, gold of 0.68 g/mt, and silver of 3.1 g/mt. This included 132 meters of mineralization with a copper grade of 0.71%, gold of 0.85 g/mt, and silver of 4.3 g/mt. The company's announcement on May 23, 2024, revealed that the PIU03-2024 drill hole, located north of PIU-08, intersected 801 meters of ore with a copper grade of 0.40%, gold of 0.51 g/mt, and silver of 2.87 g/mt. This included 518 meters of mineralization with a copper grade of 0.53%, gold of 0.73 g/mt, and silver of 3.45 g/mt. The highest-grade copper-gold ore occurs in multistage porphyry Type A and Type B veins, dominated by chalcopyrite with minor bornite and some secondary chalcocite in the upper parts. There is a significant amount of copper-gold ore in the vicinity of the central Piuquenes area, indicating substantial exploration potential. On April 30, 2025, the company announced a new discovery. The PIU06 drill hole intersected 208 meters of ore at a depth of 292 meters, with a copper grade of 0.31%, gold of 0.13 g/mt, and silver of 1.24 g/mt.