(Adds more production numbers)
LONDON, Jan 19 (Reuters) - Chilean miner Antofagasta
on Wednesday forecast annual copper production below
2021 levels, as operations continue to be impacted by Chile's
driest weather in years.
The London-listed miner, majority owned by Chile's Luksic
family, said 2021 copper production fell 1.7% to 721,500 tonnes,
which was within the range of the company's outlook.
For 2022 it forecast 660,000 to 690,000 tonnes, because of
lower grades at some operations and an expected shortage of
water.
Water is essential in copper production, used abundantly to
separate the mineral from its ore and in subsequent steps.
To counter water shortages, many mining companies desalinate
ocean water and use it in their processes.
Antofagasta is redesigning a desalination plant at its
flagship Los Pelambres mine, for which costs are being reviewed.
It expects to complete work on the concentrator plant expansion
early in 2023.
For 2022, it expects capital expenditure of $1.7–1.9
billion, up from $1.6 billion in 2021, due to higher development
costs at Los Pelambres.
Copper prices broke records in 2021 and Chile, which
produces nearly 30% of the world's output, largely maintained
production even during the worst of the pandemic. Copper is
essential in construction and electric vehicle manufacturing.
(Reporting by Clara Denina in London and Priyanshi Mandhan in
Bengaluru; editing by Jason Neely)
Antofagasta (ANTO)
