The shrinking output by Codelco is attributed to the struggles faced by Chile as a mining destination.
SEATTLE (Scrap Monster): The forecasts for copper production by Chilean miner Codelco indicates that its output is running to a stand still.
The state-owned miner announced last week that it expects the output to reach between 1.49 million and 1.51 million tonnes this year. This is significantly lower than the earlier forecast of 1.61 million tonnes. Also, the company had guided for an output of 1.45 million tonnes for the upcoming year. The structural projects announced by the company to maintain output levels are seen running behind schedule and over budget, noted Maximo Pachelco, Chairman, Codelco while speaking to a local newspaper.
Even the best forecast equates to the lowest output in at least a decade. The average output forecasts for 2023 would be lower by at least 400,000 tonnes from the peaks recorded in 2015.
The shrinking output by Codelco is attributed to the struggles faced by Chile as a mining destination. The country’s mining sector has been troubled with a bouquet of grave issues including scarcity of water, declining grades, rise in tax rates, escalating capital expenditure budgets and regulatory uncertainties.
Chile’s output levels have stagnated and the output is back to 2004 levels, despite number of new mines coming online. This clearly points to ongoing decline in the existing mining assets.
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