MINEX Forum

Tag: Aurubis

  • Strategic Gains in Tungsten and Rare Earths: Almonty, Aurubis, and MP Materials Thrive Amidst Political Support

    Strategic Gains in Tungsten and Rare Earths: Almonty, Aurubis, and MP Materials Thrive Amidst Political Support

    In a landscape marked by increasing geopolitical tensions and a growing emphasis on domestic production, Almonty Industries, Aurubis, and MP Materials are emerging as key players in the mining sector, benefiting significantly from substantial financial backing from Washington and Brussels. The recent US decision to prohibit the export of tungsten waste and scrap without a licence highlights the strategic importance of tungsten, particularly as Almonty Industries prepares to ramp up operations at its Sangdong mine in South Korea. This mine, which is set to begin processing in July, boasts nearly 140,000 tonnes of ore valued at approximately USD 68 million. Almonty is well-positioned to address the ongoing supply shortage, with a remarkable 498% revenue increase to CAD 43 million and a gross margin of 60.7% reported in their latest quarterly figures. The company’s robust cash position of CAD 1.2 billion, bolstered by an USD 800 million senior notes offering, allows for significant investments, including a planned expansion of production capacity.

    Meanwhile, Aurubis, the Hamburg-based copper smelter, is navigating a complex year, marked by high metal prices and strong demand for sulphuric acid, alongside delays in its US expansion project. The company reported a 31% increase in operating earnings before tax (EBT) to EUR 374 million for the first nine months of the 2025/26 financial year, driven by rising copper prices and increased revenue from sulphuric acid. However, setbacks in the Richmond project have tempered investor enthusiasm, with full ramp-up now expected to be delayed by six months.

    On the other hand, MP Materials is showcasing operational progress with a 41% increase in NdPr production and a 127% rise in sales volume. Despite a GAAP loss of USD 20.3 million, the company is securing future revenues through strategic supply contracts with the US Department of Defense, which guarantees a minimum price for NdPr over the next decade. The company is also making strides in its magnet production, with expectations of over 1,000 tonnes of NdPr production in the upcoming quarter.

    The political support from both the US and EU is proving beneficial for these companies, as they navigate the complexities of the market. Almonty Industries is leveraging its strategic tungsten asset, while Aurubis is focused on solid operational performance despite expansion delays. MP Materials is capitalising on lucrative contracts and production advancements, although its share valuation remains a concern as market expectations may be overly optimistic. Overall, while the commodities boom is celebrated in stock markets, the path to sustained success for these companies is fraught with challenges and uncertainties.

  • Aurubis Sets Record Copper Premium as Global Supply Tightens

    Aurubis Sets Record Copper Premium as Global Supply Tightens

    Europe’s largest copper producer, Aurubis, will charge a record $315 per metric ton premium for refined copper sales to European customers in 2026, according to three market sources cited on Tuesday.

    The surcharge — applied on top of the London Metal Exchange (LME) benchmark price — represents a 38% increase from the $228 per ton level maintained over the previous two years. The company declined to comment on the pricing decision.

    The sharp rise comes amid mounting fears of a global copper shortage that has driven prices to a 16-month high of $10,800 per ton on Monday. LME copper has climbed about 8% in the past month, trading at $10,698.50 as of Tuesday morning (1027 GMT).

    The market has been rattled by a series of production setbacks across major mining regions. Freeport-McMoRan declared force majeure at its Grasberg mine in Indonesia — the world’s second-largest copper operation — following a deadly mudslide, forcing the company to cut its 2025 and 2026 sales forecasts. Additional disruptions have hit the Kamoa-Kakula mine in the Democratic Republic of Congo and Chile’s El Teniente mine.

    According to Société Générale, the loss of roughly 273,000 tons of copper output from Grasberg between September and December will push the market into its largest supply deficit since 2004. Bank of America has similarly revised its outlook, more than doubling its projected 2026 deficit to 350,000 tons.

    Analysts note that while demand for copper continues to rise — driven by electrification, renewable energy, and grid expansion — supply growth remains constrained by operational challenges and long lead times for new projects.

  • Aurubis Upgrades Avellino Shaft Furnace to Boost Copper Wire Rod Production and Sustainability

    Aurubis Upgrades Avellino Shaft Furnace to Boost Copper Wire Rod Production and Sustainability

    Aurubis AG, one of the world’s largest copper recyclers and a leading provider of non-ferrous metals, has completed the modernization of its shaft furnace at the Avellino site in Italy. The €5 million investment marks a key milestone in enhancing the efficiency, sustainability, and long-term competitiveness of copper wire rod production.

    Copper wire, essential for data centers, renewable energy, electrification, and e-mobility, is a strategic material at the core of Europe’s energy transition. The modernization has increased production capacity at Avellino by nearly 20% while lowering energy use and reducing CO₂ emissions.

    The shaft furnace, central to wire rod production, operates by feeding copper cathodes and high-purity scrap from the top, where they are preheated by rising hot gases before melting at the bottom. This process maximizes energy efficiency and throughput.

    Upgrades included extending the furnace shaft, installing a new shell, modernizing the refractory lining, optimizing the charging system, and preparing the site for a future-ready burner and combustion setup. These improvements lay the foundation for further decarbonization and sustainable energy solutions.

    “Modernizing the shaft furnace provides the foundation for more energy-efficient and future-ready production in Avellino. At the same time, it strengthens our market position and ensures the long-term supply of strategically important copper wire rod for our customers,” said Bernardino Greco, Site Manager at Aurubis Avellino.

    Tim Kurth, Chief Operations Officer for Custom Smelting and Products, added: “The investment secures an advanced supply of copper wire, a key product for the major transformation trends, and plays a decisive role in strengthening Europe’s competitiveness.”

    Aurubis plans a second upgrade phase in August 2026, which will introduce a new natural gas combustion system expected to lower gas consumption by up to 10%. Once completed, the full production capacity increase will take effect.

    The Avellino site is also the first in Italy to begin the process of securing The Copper Mark certification, an independent assurance framework promoting responsible copper value chain practices.

  • Aurubis Reports Strong Q1 Earnings Driven by High Metal Prices and Copper Demand

    Aurubis Reports Strong Q1 Earnings Driven by High Metal Prices and Copper Demand

    Aurubis, Europe’s largest copper producer, posted stronger-than-expected first-quarter earnings, fueled by rising metal prices, strong copper product sales, and increased revenue from sulphuric acid. The company also benefited from lower costs, contributing to a 17% year-on-year rise in pre-tax earnings to €130 million ($135 million), surpassing analyst estimates of €126 million.

    CFO Steffen Hoffmann highlighted the growing demand for sulphuric acid, widely used in fertilizers and the chemical industry, which is helping offset declining refining fees for copper concentrate. Analysts predict a sharp drop in benchmark refining fees from $80 per tonne to around $20–$25 in 2025, posing a challenge for smelters like Aurubis.

    Despite concerns over potential U.S. tariffs, Hoffmann reaffirmed the company’s strategic focus on local production. Aurubis is expanding its recycling plant in Georgia, adding a second module that will increase blister copper output from 35 to 75 kilotonnes.

    The Hamburg-based company, which recycles raw materials into copper anodes, cathodes, and wire rods, expects the artificial intelligence (AI) boom to drive further demand for its wire rod products, a crucial component in data centers.

    Aurubis confirmed its full-year outlook, maintaining confidence in sustained demand and strategic expansion.

  • Major Executive Shake-Up at Aurubis Following Massive Fraud Losses

    Major Executive Shake-Up at Aurubis Following Massive Fraud Losses

    In response to fraud-related losses in the hundreds of millions, Hamburg-based copper producer Aurubis is undergoing significant leadership changes. On Monday evening, the company confirmed that three out of four executive board members, including CEO Roland Harings, will step down. This move follows “advanced talks” with the supervisory board about terminating their positions.

    Harings, along with CFO Rainer Verhoeven and Chief Production Officer Heiko Arnold, will leave the executive board by February, June, and September of next year, respectively. Despite the impending departures, Aurubis stated that these executives will continue fulfilling their duties until their exit dates.

    The supervisory board initiated an investigation into the leadership’s role in connection with multiple cases of fraud and theft that caused significant financial damage. These incidents included a €169 million shortfall in metal stock discovered during regular checks, resulting in manipulated samples and over-invoicing.

    As a result, the company reported a 33% drop in earnings before interest and taxes (EBT) to €349 million for the fiscal year 2022-23, with revenue falling nearly 8% to €17.1 billion. Despite these challenges, Harings emphasized that security measures have since been strengthened to prevent future incidents.

    A final decision on the leadership changes is expected to be made by the supervisory board on Tuesday.

  • Aurubis Maintains Record-High Copper Premium for 2024 Amid Strong Demand

    Aurubis Maintains Record-High Copper Premium for 2024 Amid Strong Demand

    Aurubis, Europe’s largest copper smelter, announced on Thursday that it will maintain a premium of $228 per metric ton over the London Metal Exchange (LME) price for copper sold to European customers in 2024. This premium remains unchanged from the previous two years, as previously reported by Reuters.

    A spokesperson for Aurubis confirmed that the premium remains at a “record high level” due to the consistently strong demand for copper products across Europe. She cited the ongoing transition to renewable energy as a key factor driving this heightened demand.

    As of Thursday, copper was trading at approximately $9,900 per ton on the LME, a decline of 10% since reaching a record high of $11,100 in May.

  • Aurubis Shares Drop as Third-Quarter Earnings Miss Expectations

    Aurubis Shares Drop as Third-Quarter Earnings Miss Expectations

    Shares in Aurubis plummeted by as much as 8.8% on Monday after the company, Europe’s largest copper producer, reported third-quarter earnings that fell short of market expectations. Despite a five-fold increase in earnings before tax (EBT) to €90 million ($98 million) from the same period last year, which had been marred by a significant metals theft, the results were below analysts’ forecast of €99 million.

    Comparing with two years ago, earnings were down by 13%. The custom smelting and products segment also saw a 13%decline in EBT, registering €82 million, while revenue for the smelting business decreased by 7% compared to the same period in 2021-22.

    One trader expressed concerns that the current full-year EBT expectation of €467 million may be “rather optimistic” given the results. He noted that robust metal prices should have mitigated the impact of a major maintenance shutdown in Hamburg, which concluded in July.

    While copper prices have dropped by about 18% from their peak in May, they remain relatively high. However, weak economic indicators from the US and China have pressured prices. Metzler analyst Thomas Schulte-Vorwick attributed the earnings miss to higher-than-anticipated costs from the Hamburg shutdown and the launch of a new plant in the United States.

    Aurubis reiterated its full-year EBT guidance of €380-480 million and highlighted that this was their best-ever quarterly result during a major plant shutdown. However, the company’s future performance could heavily depend on copper prices, with weak production in the US and China posing significant risks.

  • Aurubis Appoints Toralf Haag as New Chief Executive

    Aurubis Appoints Toralf Haag as New Chief Executive

    Germany’s Aurubis has announced the appointment of Toralf Haag as its new chief executive, effective September 1. Additionally, Tim Kurth, currently the managing director of the Bulgarian branch, will take on the role of Chief Operations Officer for custom smelting, the company stated on Thursday.

    In January, the copper producer revealed it had agreed to terminate the contracts of its chief executive and chief financial officers amid a top-level reshuffle due to their handling of an alleged theft and fraud incident.

    Aurubis shares experienced a significant uptick, rising by 4.67% as of 1444 GMT and trading up 7.2% as of 1226 GMT, hours before the official announcement.

    A local analyst attributed the early rise in share price to a report by German business publication Manager Magazin, which mentioned that major shareholder Salzgitter had previously explored the possibility of acquiring more shares in Aurubis. The report stated that Salzgitter had enlisted two investment banks to “calculate the project.” However, Salzgitter reaffirmed it currently has “no interest” in taking over Aurubis, according to the magazine.

  • Aurubis Launches Modernized Tankhouse to Boost Copper Production in Lünen

    Aurubis Launches Modernized Tankhouse to Boost Copper Production in Lünen

    Aurubis officially celebrated the launch of the refurbished tankhouse for copper production at its recycling plant in Lünen, Germany. The modernized facility is set to increase production capacity by around 10%, enabling the production of up to 210,000 tons of copper cathodes annually. A €60 million investment was made to future-proof the tankhouse, ensuring the long-term success of the recycling site. This upgrade also allows for the processing of other metals, such as gold, tin, and nickel, alongside copper.

    “Global demand for raw materials is on the rise. As the largest multimetal recycling site in Europe, Lünen is a cornerstone of the circular economy. We’re delivering more responsibly produced metals to the market with our modernized tankhouse — for a successful energy transition, while strengthening and securing our core business at the same time,” said Inge Hofkens, COO of Multimetal Recycling at Aurubis AG.

    Construction on the tankhouse began in October 2020 and was completed on schedule. The upgrades included a complete refurbishment of the tankhouse basins, infrastructure improvements like a renovated roof, and investments in further automation, including state-of-the-art robot technology.

    “I am particularly proud of the fact that we were able to keep the facility running reliably at 80% while construction was ongoing. A great achievement by the whole team! Aurubis is advancing its pioneering role in recycling by investing in renovating the tankhouse,” said Verena von Weiss, Lünen Plant Manager.

    “This significant investment of €60 million is a clear signal of Aurubis’ commitment to the Lünen recycling site, to strong and efficient industry, to protecting the climate, and to safeguarding jobs and apprenticeships. Modern and responsible industrial companies like Aurubis are the foundation of our region’s prosperity,” said Lünen Mayor Jürgen Kleine-Frauns.

    The tankhouse represents the final step in the copper refining process. Copper anodes, weighing about 400 kg with a copper content of up to 98%, are electrochemically dissolved. The copper ions are deposited on stainless steel plates, resulting in 99.99% pure copper for optimal conductivity in downstream applications. Other substances in the anode, such as precious metals, precipitate out during electrolysis and are separated and refined in the Aurubis Group network.

  • Aurubis Launches Ambitious Investment Program in Bulgaria

    Aurubis Launches Ambitious Investment Program in Bulgaria

    Aurubis, a leading global supplier of non-ferrous metals, has initiated a groundbreaking investment program titled “Investments for Progress: Bulgaria 2027,” with a staggering budget of BGN 800 million. The program aims at bolstering the country’s industrial infrastructure, enhancing energy efficiency, and modernizing production facilities. The kickoff ceremony, held on April 25, marked the commencement of several pivotal projects, including the expansion of cathode copper capacity, the construction of new photovoltaic plants, and the implementation of energy efficiency initiatives. Notably, the expansion of the cathode copper refinery near Pirdop and Zlatitsa stands out as a flagship endeavor, promising to boost production capacity by 50%, from 230,000 to 340,000 tons annually. This ambitious venture underscores Aurubis’ commitment to sustainable growth and its pivotal role in meeting the surging global demand for copper amid the ongoing energy transition. The ceremony witnessed the presence of key dignitaries, including CEO Roland Harings of the Aurubis Group and Dr. Petko Nikolov, the Minister of Economy, who hailed the initiative as a significant milestone for Bulgaria’s economic advancement and bilateral relations with Germany.