https://www.miningweekly.com
Copper|Mining|Projects|Resources|Operations
Copper|Mining|Projects|Resources|Operations
copper|mining|projects|resources|operations

Chilean miner Codelco says copper price fall puts projects 'at risk'

23rd March 2020

By: Reuters

  

Font size: - +

SANTIAGO – Chilean copper miner Codelco said on Monday that the drop in copper prices has put some of its projects "at risk."

The miner, the world's largest of the red metal, said in a letter sent to all its workers that the significant decline "casts doubt on our ability to generate resources and also questions the viability of some of the projects that we have been vigorously promoting until now."

"The measures we take today will be crucial to ensure Codelco's sustainability and future," the letter, signed by CEO Octavio Araneda, added.

Codelco has a $40-billion,ten-year upgrade planned for its mines around the country to maintain output despite rapidly falling ore grades.

Copper prices have tumbled 22% so far this year from an already low base last year because of the US-China trade war with the outbreak of coronavirus first in China and now spreading globally.

A slide in copper demand is expected to fuel a surplus this year of up to a million tonnes in what had previously been expected to be a balanced market, with the loss of consumption from key buyers likely greater than the decline in supply due to coronavirus-related disruption, analysts believe. 

Last week Codelco said it would slow production to a level of "operational continuity" for a period of 15 days from March 19 to comply with a state of catastrophe announced by the government to curb the virus' spread. 

The letter comes as some mining unions are pressing its management to take more drastic measures to curb the spread of the virus, including stopping operations altogether.

Edited by Reuters

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

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:0.179 0.215s - 108pq - 2rq
Subscribe Now