https://www.miningweekly.com
Copper|Efficiency|Mining|Power|Technology|Underground|Equipment|Solutions
Copper|Efficiency|Mining|Power|Technology|Underground|Equipment|Solutions
copper|efficiency|mining|power|technology|underground|equipment|solutions

Chile copper production seen growing by 4% next year

BHP Billiton's Escondida copper mine, in Chile

BHP Billiton's Escondida copper mine, in Chile

Photo by Bloomberg

19th November 2018

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

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.

Moreover, Fitch reports the Michilla mine, which is owned by Haldeman Mining and is due to restart, shows improving investor appetite to mine in Chile. The mine will be restarted in 2019 as a medium-scale mine and will produce 170 000 t over the next ten years.

Antofagasta has raised its copper production guidance from between 705 000 t and 725 000 t in 2018, to between 750 000 t and 790 000 t in 2019, while expecting higher ore grades from its Centinela and Zaldivar mines, unlike most miners that are seeing declining ore grades.

“Mines who saw production decreases over recent quarters cited declining ore grades as one of the main contributing factors. Chile has seen the national average ore grade steadily decline over the last decade.

“As ore grades decline, it takes higher amounts of mined copper ore to be processed to reach the same level of copper concentrate output. This issue presents an attractive opportunity for miners to invest in new technology or upgrade equipment to improve operational efficiency,” Fitch says. 

In terms of labour unrest, Fitch anticipates a lower possibility of miner strikes impacting 2019 copper production. Chilean copper mine companies received numerous threats of miner strikes over contract disputes in 2018, which is on the back of 2017 legislation giving miners more negotiating power.

Owing to this, many contracts were negotiated and agreed to, some with expiration dates of 36 months, therefore Fitch sees fewer opportunities for mineworkers to strike in 2019.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.098 0.134s - 90pq - 2rq
Subscribe Now