Chilean miner Codelco says copper price fall puts projects 'at risk'
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.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation