Maaden expects copper, aluminum demand to rise

Saudi Arabian Mining Co. (Maaden) said it expects copper demand to rise by 2 percent to 23.34 million tons in 2016, and aluminum demand to rise 5 percent over the next five years.

Meanwhile, the fertilizer market in Q4 2016 is expected to see downward pressure due to lower raw materials input costs and weaker demand and new supply from China, the miner predicted during its Q3 earnings conference call.

Looking back at Q3, Maaden sold 672,000 tons of ammonium phosphate fertilizer products, up 7 percent YoY, and 151,000 tons of ammonia, a 14 percent rise YoY due to higher ammonia available for external sales.

Jabal Sayid copper mine, its 50-50 joint venture with Barrick Gold Corporation (Barrick) which started commercial operations on July 1, sold 9.9 thousand tonnes of copper in Q3. The mine is expected to ramp up production to produce 45,000 tonnes per year, Maaden projected.

The company’s Bauxite mine at Al Ba'itha and alumina refinery, which started commercial operations on October 1, reached a utilization rate of 90 percent of its design capacity in Q3. Surplus alumna production will be sold to third-party companies in the coming quarter, after local needs are fulfilled, the company said.