Chilean copper mining group Antofagasta ended 2018 on a strong note, achieving record production for the final quarter of 220 000 t and touching the top end of the full-year guidance at 725 300 t.

Full-year production is also a new record for the company and 3% higher than output in 2017, owing to higher production at Los Pelambres and Centinela.

Copper production in the fourth quarter was 16.8% higher than the previous quarter, owing to higher production at all operations, particularly at Centinela Concentrates, which increased production by 68.3%.

Throughput at Centinela Concentrates in the fourth quarter was 6% above design capacity at 111 100 t/d.

Gold production surged by 87.1% quarter-on-quarter to 90 000 oz in the fourth quarter, which Antofagasta attributed to higher throughput, grades and recoveries at Centinela. Full year production was 210 100 oz, the top end of its guidance.

Molybdenum production was 3 300 t in the fourth quarter and 13 600 t for the full year, 29.5% higher than in the previous year on higher throughput, grades and recoveries at Los Pelambres, and above guidance.

“Reflecting our continued focus on costs our net cash costs for the quarter were $0.99/lb, the lowest since 2012, and for the year were only 3% higher than in 2017, despite average grades declining and cost pressure from rising input prices,” indicated Antofagasta CEO Iván Arriagada in a statement on Wednesday.

“The group’s operations have achieved an improved level of operating stability and we go into 2019 with real momentum for what we expect to be another record-setting year, with production increasing by up to 9% to 750 000 t to 790 000 t at net cash costs of $1.30/lb.

“In 2019, the company will seek to continue strengthening its safety performance and operational reliability and efficiency,” he said.

This follows an announcement in October 2018, when, after 26 months without a fatality, there was a fatal accident at Los Pelambres.

The company indicated that a full investigation had been completed and the lessons learned had been implemented.

Further, 2019 will see the beginning of construction of the Los Pelambres expansion, which was approved by the board at the end of last year.

Group production in 2019 is expected to be a record year with 750 000 t to  790 000 t of copper, 240 000 oz to 260 00 oz of gold and 11 500 t to 12 500 t of molybdenum.

The group cash costs in 2019 before and after by-product credits are expected to be similar to 2018’s at $1.70/lb and $1.30/lb, respectively.

Capital expenditure in 2019 is expected to be $1.2-billion, including the Los Pelambres expansion project, which will add 60 000 t/y of copper.

Sustaining capital expenditure and mine development it expected to remain at similar levels as 2018.