Simandou Production Reaches 10 Mtpa Annualised Rate

What happened

According to Rio Tinto’s October 14 production report, Simandou reached an annualised production rate of approximately 10 million tonnes during the third quarter, on a 100% basis. However, this measures the pace of output rather than tonnes produced over the quarter. Meanwhile, the project still targets a 60 million tonne annual rate during the second half of 2028.

In addition, Oyu Tolgoi copper production rose 27% from the same quarter last year and 29% over the first nine months. Specifically, the Mongolian operation ran at an annualised rate of roughly 450,000 tonnes in the quarter. Across the group, however, quarterly copper output remained flat from a year earlier at 205,000 tonnes on a consolidated basis.

Overall, the updates show major growth projects translating into operating output. Even so, the next test for investors and industrial buyers is sustained delivery as these operations increase production.

What happened

According to its October 14 announcement, Luca Mining closed subscription receipt financings totalling approximately C$211 million. Specifically, the company raised C$155 million through a bought deal and C$56.4 million through concurrent placements with Wheaton and Taurus. The proceeds will partly fund its proposed purchase of Cozamin from Capstone Copper.

However, the financing close does not complete the mine acquisition. In particular, proceeds remain in escrow until the required conditions are satisfied or waived. Final TSX Venture Exchange approval of the financings also remains outstanding.

The equity raise therefore advances the funding package for an existing Mexican copper operation. Meanwhile, investors must still distinguish subscribed capital from cash available to complete the transaction. The acquisition also remains separate from any future expansion of mine output.

What happened

According to Chile’s Labour Directorate, Minera Escondida and Union No. 2 of Supervisors and Staff reached an agreement on October 14. Specifically, the afternoon settlement followed mediation by the agency after workers had approved a strike.

Accordingly, the afternoon announcement changes the operating risk picture described in earlier reports about potential industrial action. The confirmed development is an agreement between the company and this bargaining group, rather than a continuing dispute awaiting a settlement.

For copper buyers and investors, the outcome reduces an immediate source of labour uncertainty. However, the official notice does not quantify any production effect or disclose the financial terms. It therefore provides no basis to calculate additional output or tonnes of supply preserved.

What happened

According to Larvotto Resources’ October 14 announcement, Hillgrove had begun its first shipment of 68 tonnes of antimony concentrate. Specifically, the first truck left the site that day. Meanwhile, offtaker Wogen Resources collected the product at the mine gate, meeting a delivery condition for an initial part payment.

Importantly, the 68 tonnes refer to concentrate rather than contained antimony. Mine gate collection also differs from delivery to an overseas processing destination. The announcement does not establish that the entire shipment has completed its onward journey.

The milestone therefore connects plant commissioning with a physical customer delivery and the payment process. However, it does not establish a sustained annual production rate. For supply chain buyers, consistent concentrate quality and repeat deliveries remain the next operating tests.

What happened

According to Grange Resources’ October 14 announcement, its board approved a sublevel cave beneath Savage River’s North Pit. Specifically, the plan estimates underground capital at A$287 million. In addition, the company estimates A$234 million of sustaining capital over the project life and plans to fund development from existing cash and operating cash flows.

Following contract awards and mobilisation targeted for late 2026, underground development is scheduled to begin in early 2027. However, first production ore from the sublevel cave is targeted for 2028, with an ore mining rate of roughly four million tonnes a year in 2030.

The staged plan aims to maintain pellet supply through 2035 while preserving a possible later block cave. However, that larger option would still require a separate decision and funding. Accordingly, the approved investment advances a specific underground development rather than the entire longer term expansion.

What happened

According to its October 14 announcement, Mercuria agreed a prepayment and offtake with Heritage Minerals to support the Mount Morgan restart. Specifically, it combines an A$40 million prepayment with offtake for the first 210,000 ounces of gold in doré over four years.

However, the contracted volume is cumulative across that period, rather than an annual production figure. The announcement also establishes an agreed prepayment, not confirmation that the cash has already been disbursed. Meanwhile, Mercuria says production is due to begin in the fourth quarter of 2026.

The arrangement therefore links project funding to future physical deliveries. For investors, the next milestones are the start of production and fulfilment of the sales agreement. Meanwhile, the short release does not disclose pricing, interest or the conditions governing disbursement.