Antofagasta CEO Ivan Arriagada
LONDON – Chilean miner Antofagasta expects its copper output to reach 900 000 t by 2026, some 20% higher than currently, with growth coming mostly from exploration and possibly targeted acquisitions, its chief executive said on Tuesday.
Five-year production could reach around 900 000 t of copper by 2026 if the second concentrator at its Centinela mine in Chile is approved by the board at the end of 2022, CEO Iván Arriagada told investors during the annual Capital Markets Day.
The copper miner, whose earnings soared to a record $2.4-billion in the first half, had cut its copper output guidance for the year to between 710 000 t and 740 000 t from 730 000 t to 760 000 t, as operations were affected in 2021 by Chile's driest weather for 12 years.
Citi analysts said the increase in production was in line with expectations.
Antofagasta mines copper in Chile, Peru, the United States and Canada and is "currently looking for M&A opportunities at early-stage copper projects to work on, particularly in South America," said Andronico Luksic, vice president for development.
The London-listed miner, majority owned by Chile's Luksic family, has most of its assets in Chile, which is undergoing structural changes with the first presidential election race since widespread protests two years ago over inequality.
The Chilean lower chamber of Congress in May voted in favour of a royalties bill to pay for social programs during the Covid-19 pandemic involving a tax that would increase progressively alongside copper prices.
Copper prices broke records earlier this year and Chile, which produces nearly 30% of the world's output, largely maintained it even during the worst of the pandemic. The metal is essential in construction and electric vehicle manufacturing.
Antofagasta's share price closed 0.3% lower on Tuesday, underperforming most of its peers.