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- Alara Resources has been busy getting a plant in order to produce copper concentrate
- On Tuesday, that process has started
- Full capacity will be hit in the next 120 days with the first shipment of 1000dmt of copper concentrate expected in April
- Shares closed Monday at 3.7cps
Middle-east based and ASX-listed copper-gold player Alara Resources (ASX:AUQ) has reported that copper concentrate on-site its Omani acreage has commenced.
The kick-off for production reflects a new high-watermark for the company’s operational activities with a shipment of 1,000 dry metric tonnes tipped for delivery by as early as April.
Coming from Alara’s Al Wash-hi – Majazza mine, 51% owned by Alara’s JV company Al Hadeetha Resources, the news makes Alara one of the ASX’s latest copper producers.
Well, concentrate, anyway. Not that buyers mind – which, by the way, is none other than commodities giant Trafigura.
Management called the milestone “momentous.”
“The commencement of concentrate production is a momentous occasion for Alara and its shareholders. This represents the culmination of 12 years’ hard work” Alara chief Atmavireshwar Sthapak said.
“Alara looks forward to the next stage of its journey to become a mid-tier mining production company, involving a shift of focus to developing existing exploration projects and new acquisitions.”
The news comes in a world where metals remain broadly under pressure from a slower China.
However, copper – being copper – has suffered less of a downturn in prices, not really tracking lithium and nickel in the same way (notwithstanding nickels’s recent rally.)
As the electrification metal will still be needless regardless of whether the world embraces decarbonisation and supply chain security or not, copper is viewed as one of the more boring – and thus safer – commodities at this current time.
AUQ shares closed Monday at 3.7cps.
