Copper production in Chile slows down due to project problems
2023.01.25 13:49
Copper production in Chile slows down due to project problems
By Tiffany Smith
Budrigannews.com – A government report seen by Budrigannews indicated that copper production in Chile, the world’s largest producer of the red metal, will grow at a slower rate this decade than anticipated, with a peak output that is later and lower than anticipated a year ago.
According to an unpublished report, the production of the red metal is likely to reach its peak of 7.14 million tonnes in 2030, two years later than anticipated due to delays affecting mining projects in the Andean nation.
In its decade outlook a year ago, the regulator estimated a peak of 7.62 million tonne in 2028.
According to the report, “lots of important projects in the next decade haven’t advanced in engineering or environmental baselines during the pandemic,” and the outlook is “quite lower than projections made in previous years.”
The metal’s global price, which has risen above $9,000 per tonne since 2020, may be supported by Chilean production problems. Additionally, major mine production at the world’s No. 1 has been halted due to protests in Peru, a neighbor. two nations that produce copper.
The report projects a 17% increase in production to 6.58 million tonnes by 2033, despite the anticipated slower growth in Chile. In 2022, the anticipated output is 5.345 million tonnes, in 2024, it is 5.467 million tonnes, and in 2024, it is 5.891 million tonnes.
The report states that its projections are contingent on the completion of all planned mining projects in the portfolio, adding that projects to maintain and expand existing mines alone would not be sufficient to meet projections.
According to the report, “It’s necessary for all the new initiatives on the national investment portfolio to materialize,” which would account for 17% of production by 2033.
The head of research at Cochilco, Victor Garay, told Reuters that the peak couldn’t come earlier because new projects needed studies and analysis, which “take a long time.”
After the government denied permits for the Dominga iron and copper project and amid uncertainty regarding a new constitution, Chile’s top exporter, the copper sector, has demanded more “legal certainty” for investment.
Freeport-McMoRan Inc. (FCX.N), a mining company, said on Wednesday that expansion projects in Chile would be put on hold until the political situation in the country was better understood.
“Should close the cycle of production losses associated with the (COVID-19) pandemic,” the report stated, despite the fact that production fell last year in comparison to 2021.
“Without expected replacement projects that would allow continuity,” some operations will either close or produce less after the peak in 2030.
