Copper producers are paying the price of their Covid cutbacks
Southern Copper missed quarterly output expectations as the world’s fifth-largest producer deals with the lingering effects of the pandemic.
While producer profits are booming thanks to high prices fueled by the pandemic recovery, their operations are paying the price of Covid-fighting measures. Southern had to process lower quality ore last quarter after undertaking earthworks and maintenance that had been postponed last year in a bid to maintain production with reduced staffing.
After an initial supply shock when the world went into lockdown early last year, copper suppliers largely bounced back by focusing on the bare essentials of churning out metal. Non-essential workers stayed home as mine preparation and upkeep efforts were delayed. But that was a short-term fix that carried risks for future output.
Southern Copper’s operations in Peru and Mexico produced 237 110 metric tons in the second quarter, down 6.3% from the previous quarter and falling short of the 241 630-ton average estimate among analysts tracked by Bloomberg. The giant Escondida mine in Chile is also playing catchup with mine development.
Still, Southern is targeting a recovery to 960 000 t for the year and a 259% surge in quarterly net income from a year earlier helps dull the pain of operational headwinds. It also remains hopeful that the economic benefits of its Tia Maria project will help it secure permits under the incoming government of left-winger Pedro Castillo.
Comments
The
functionality
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