Tianqi appeals Chile ruling on SQM-Codelco lithium deal
The partnership would grant SQM the ability to extract lithium in the prized Atacama salt flat through 2060.
The state-run Chilean Copper Commission (Cochilco) said on Thursday that it had raised its projection for the price of copper for this year to $3.30 per pound amid progress in vaccination campaigns against covid-19 as well as good prospects for the Chinese economy.
In November, Colchilco forecast a price of $2.90 for 2021.
Its updated projection is driven by “optimistic expectations of an early start to global vaccination against covid-19, the high economic growth projected for China and the perception of vulnerability of the global copper supply,” it said.
Chilean production of the red metal closed almost unchanged last year
However, Cochilco’s head of studies, Jorge Cantallopts, stressed that the uncertainty around a potential second wave of covid-19 in copper producing countries could impact supply of the metal “and therefore the price could be higher even than what we are projecting”.
The commission also expects a copper deficit in the global market of 70,000 tonnes, representing an almost balanced market, while by 2022 it saw a surplus of 116,000 tonnes.
Cochilco also projected a production volume for Chile, the world’s largest copper producer, of about 6 million tonnes for this year, representing a year-on-year increase of 3.6%.
Chilean production of the red metal closed almost unchanged last year as companies managed to maintain operational continuity despite pandemic-related restrictions.
(By Fabian Cambero and Aislinn Laing; Editing by Toby Chopra)
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