Copper: Humanity’s first and most important future metal
Millions of feet of copper wiring will be required for strengthening the world’s power grids, and hundreds of thousands of tonnes more are needed to build wind and solar farms.
Antofagasta said on Wednesday it expects copper production to be between 670,000 tonnes and 710,000 tonnes in 2023 with the completion of its Los Pelambres desalination and concentrator plants in Chile.
The Chilean miner also said it produced 181,900 tonnes of copper in the third quarter of the current year, 40.1% higher than the previous quarter, as production nearly doubled at its flagship project Los Pelambres due to improved water availability.
“The pace of increase in copper production next year is slightly lower than consensus expectations set at 723,000 tonnes,” Citi analysts said in a note.
The miner left its 2022 output outlook unchanged at the lower end of 640-660,000 tonnes, having earlier cut the target following a leak in an underground pipeline that transports concentrate from Los Pelambres, which accounted for 45% of the group’s production last year.
The London-listed producer, which operates four copper mines in Chile, said it expects sustaining and mine development capital expenditure at around $1 billion per year for the coming years, due to larger projects including the expansion of the Los Pelambres desalination plant and the replacement of its concentrate pipeline.
The world’s biggest copper producer Chile is facing an ongoing water crisis due to historic drought that has lasted more than a decade and has impacted mining output.
Water is needed in copper smelting, and in the concentrator, which breaks down raw ore and processes it into usable material.
(By Clara Denina and Muhammed Husain; Editing by Uttaresh.V and Lincoln Feast)
Comments