Chile’s Codelco to face copper-output hit, as key mines crumble

by   |  VIEW 1204

Chile’s Codelco to face copper-output hit, as key mines crumble

Codelco, the 64-year-old Chilean State-owned copper mining company, headquartered in Santiago, would likely to face steep drop in its output over the next two years, as an internal forecast seen by a press agency had revealed that its giant Chuquicamata copper mine had been set for a 40 percent plunge on its output over the next couple of years.

Apart from that, copper supply had become a real headache for industry tycoons after latest output fall of Indonesia’s copper mine, the second largest in the world, while world’s top copper miners had been struggling to maintain output.

The giant open-pit Chuquicamata copper mine, had been the biggest by output in Chile this year, and it would be undergoing an overhaul project worth of $5 billion-plus to transform into an underground shaft mine, as an attempt to increase the mine’s lifespan.

This year, open-pit operations of Chile would yield an overall production of 4,59,000 tons, a level last seen back in 2010, but as the Chilean State-controlled copper mine would likely to shut down open pit extraction next year to ramp up future productions, Chilean copper output would fall sharply to 1,82,000 tons a year by 2021, analysts suggested.

Although persisting curb of copper productions should increase Copper futures price, however, prices had still been in multi-months low amid fears of an escalating Sino-US trade war could harm its demand.