Types of Copper Deposits in the World | Commodities

Copper mineralization happens in lots of kinds and in a selection of geological settings. As such, there are numerous elements to contemplate when figuring out the worth of differing types of copper deposits.

Traditionally, the world’s most profitable copper mines have been large-scale porphyry deposits with chalcopyrite mineralization extracted by way of open-pit mining. Whereas they don’t have the very best grades of ore and customarily have more costly refining prices, they have a tendency to have giant mineral assets.

The world’s largest copper mine is the Escondida copper porphyry mine in Chile, which is owned by BHP (NYSE:BHP,ASX:BHP,LSE:BHP), Rio Tinto (NYSE:RIO,ASX:RIO,LSE:RIO) and Japanese firm Jeco at 57.5 %, 30 % and 22.5 % respectively. Escondida means “hidden” in Spanish, and the deposit was given the identify as a result of it has no outcrops; the primary orebody is hidden under tons of of meters of overburden.

Copper manufacturing figures can change quickly, however within the first half of BHP’s 2025 financial 12 months, the company’s portion of Escondida’s copper manufacturing reached 644,000 metric tons, up 22 % over the identical period within the earlier 12 months. This represents a 10 12 months manufacturing document for the mine. Escondida has processed more than 2 billion metric tons of ore by means of leaching and flotation since opening more than a quarter century in the past. At the moment it accounts for nearly 5 % of worldwide copper output.

Methods to decide the worth of a copper deposit?

As talked about, there are various elements to have a look at when figuring out the worth of a copper deposit.

Amongst different components, firms should think about grade, refining prices, the estimated copper useful resource and the convenience at which the copper may be mined. Learn on for a transient overview of 5 issues which can be important to consider when discovering the worth of a copper deposit.

1. What are the kinds of copper deposits?

Porphyry copper deposits are low grade, however are important sources of copper as a result of they are often labored at a giant scale for low prices. They sometimes include between 0.4 and 1 % copper in live performance with smaller quantities of different metals, equivalent to molybdenum, silver and gold. Porphyry copper mineral deposits are normally large, with extraction going down by open-pit mining.

Copper-bearing sedimentary rocks are the second most important kind of copper deposit, accounting for about one-quarter of the world’s recognized copper deposits.

Different sorts of copper deposits discovered all through the world embody:

• Volcanogenic large sulfide (VMS) deposits, a source of copper sulfide fashioned by means of hydrothermal occasions in submarine environments.

• Iron oxide-copper-gold (IOCG) deposits are extremely helpful concentrations of copper, gold and uranium ores.

• Copper skarn deposits, which in a broad sense are fashioned by means of chemical and bodily mineral alterations created when two separate lithologies make contact.

2. What’s the average copper deposit grade?

Grade is a vital consider how a lot a deposit is price, and is successfully is a measure of the focus of metallic. Most copper ores include solely a small proportion of copper metallic certain up within helpful ore minerals. The rest of the ore is just undesirable rock.

Exploration firms conduct drill packages to extract samples of rock known as cores. The cores are then subjected to chemical assays to find out the “grade” of a deposit.

Copper deposit grades are normally expressed as a weight proportion of the overall rock. For instance, 1,000 kilograms of copper ore containing 300 kilograms of copper metallic has a grade of 30 %. When metallic is at a a lot decrease focus, it might be described in phrases of components per million. Nevertheless, grade is the common conference with copper, and exploration firms estimate grade by means of drilling and assaying.

The average grade of copper ores within the twenty first century is under 0.6 % copper, with the proportion of ore minerals being much less than 2 % of the overall quantity of the ore rock.

Traders ought to strategy grade estimates with a vital eye. When an exploration company points grade statements, buyers must be sure to check them to the overall depth of the drill core used to find out the grade. A high grade at a low depth can have far much less worth than a mediocre grade constant by means of a deep core.

3. How a lot does it value to mine copper?

The most important, most profitable copper mines have been open-pit mines, though underground copper mines should not unusual. Of key significance in an open-pit mine is a useful resource that’s comparatively close to the floor.

Mining firms are significantly within the quantity of overburden, which is the quantity of nugatory rock and soil on high of the copper useful resource. This materials have to be eliminated to entry the useful resource. Escondida, talked about above, has a useful resource that’s coated by a great amount of overburden, however the deposit remains to be financial due to the giant dimension of the useful resource beneath.

4. What are the kinds of copper ore?

There are two distinct sorts of copper deposits: sulfide ore and oxide ore. Presently, probably the most common source of copper ore is the sulfide ore mineral chalcopyrite, which accounts for about 50 % of copper manufacturing. Sulfide ores are processed by way of froth floatation to acquire copper focus. Copper ores containing chalcopyrite can produce a focus with 20 to 30 % copper in focus.

The more helpful chalcocite concentrates sometimes grade increased, coming in between 37 and 40 % copper in focus due to the incontrovertible fact that chalcocite accommodates no iron. Chalcocite has been mined for hundreds of years, and is one of probably the most profitable copper ores. The explanation for that’s its high copper content material and the convenience at which the copper it accommodates may be separated from sulfur.

It’s not, nevertheless, the first copper ore right this moment. Copper oxide ores are leached with sulfuric acid to liberate the copper minerals into a answer of sulfuric acid laden with copper sulfate answer. The copper sulfate answer (known as the pregnant leach answer) is then stripped of copper by way of a solvent extraction and electrowinning course of, which is more economical in comparison with froth flotation.

5. What are major and secondary ores?

All copper mines have totally different mineral assemblages. The first assemblage is the mineralization kind that’s most prevalent. Most sorts of copper deposits even have secondary ores, nevertheless, they usually can add a great deal of worth to a deposit. The Escondida mine is primarily a chalcopyrite porphyry deposit overlain by secondary oxides. It’s important for firms to not low cost secondary mineralization.

What makes a world-class copper deposit?

Whereas there are different elements to contemplate when valuing a copper deposit, the upshot is that a world-class copper deposit holds a copper useful resource whose worth far exceeds the associated fee of mining and refining. Up to now, some of the largest copper finds have been the Kennecott copper mine, a large-scale porphyry deposit, the Chuquicamata copper porphyry advanced and, of course, Escondida.

That is an up to date model of an article initially revealed by the Investing Information Community in 2016.

Don’t neglect to observe us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, maintain no direct investment curiosity in any company talked about on this article.

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.