The Mining Group is a standalone entity that oversees Trafigura's mining assets. Its strategy is to grow the business by optimising current assets, realising future projects and through a disciplined and focused acquisitions programme.
The Mining Group was established as a wholly owned subsidiary in 2012. It is currently active in South and Latin America, Europe, Asia and Africa. Its global activities are managed on a decentralised basis from Johannesburg, with ancillary offices in Geneva, Seville, Singapore and Lima. Its primary cash-generative asset, Mina Aguas Tenidas (MATSA) in Spain, operates a 2.2 million tonne per year mine and concentrator producing copper, zinc and lead concentrates with some gold and silver.
Following recent approval for a significant expansion at MATSA, Trafigura will be investing extensively in the asset over the next 24 months. The new plant is expected to double annual production to 4.4 million tonnes annually.
In addition, The Mining Group operates the Catalina Huanca and Condestable mines in Peru and is developing a zinc and lead project in Latin America. In the DRC, Luna Mining is the entity driving two large copper exploration projects and a smaller series of copper processing units. The Mining Group is also active in Angola, Mongolia and Tanzania.
A strategy for growth
The Mining Group aims to grow organically and acquire operational control of mining assets worldwide. These assets will directly complement Trafigura's trading competencies and international presence.
Collaborating across Trafigura
Interconnectivity between Trafigura's operations is a key source of competitive advantage.
In Angola, where the Government is pursuing a plan to become self-sufficient in steel, the AEMR joint venture, partly owned by DT Group, is operating a concession to develop iron ore and manganese mining assets. The Mining Group is playing an integral role here in developing and building operations. An initial 2 million tonnes per annum iron ore mine with associated infrastructure will form the platform for later expansion to a 20 million tonnes per annum operation.
Impala Africa has a significant presence in Tanzania. The Government is developing mining assets in the country to expand its coal export industry. Logistical support is a key imperative. The Mining Group is exploring various projects here to complement these activities.