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Base Metals
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General Market Commentary
Topics:
General Base Metals
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General Market Commentary
Chile copper production seen growing by 4% next year
Chile is set to deliver steady production growth of 4% next year, as the risk of labour strikes decreases and mines are upgraded, Fitch Solutions Macro Research says in a report, also warning that declining grades pose a downside risk to its long-term forecast.
Fitch states that Chile’s copper mine production is forecast to grow by 2% in 2018, to 5.4-million tonnes, on the back of strong production increases from major mines. For example, Anglo American posted an increase of 54 100 t in the first three quarters of 2018, a 13% year-to-date growth over the same period last year.
Further, production from the Escondida copper mine, which is jointly owned by BHP Billiton, Rio Tinto, Jeco Corporation and Jeco 2, was not hampered by a mineworker strike this year and commissioned new concentrators in September 2017, which aided with higher production in 2018.
Codelco also showed a slight overall increase to 1.7-million tonnes of copper produced in the first half of 2018, compared with the first half of 2017, of 2.8%, despite declining ore grades.
Fitch highlights that the new Chuquicamata underground mine will offer support to Codelco’s copper mine production levels. The underground portion of the mine will initially add to Chuquicamata’s overland production as the mine switches to an underground operation over the next decade.
“The current plan forecasts a seven-year ramp-up period before full production is reached. Once fully operational, the underground portion will produce 320 000 t of copper a year.
“Owing to the ramp-up, and the projected start date in mid-2019, we expect to see this add to our 2019 copper forecast,” the firm states.