Need moreore24 Feb 2021 22:09
Thanks to Fulmar
Running out of ore ?
Why are major mining companies so intent on securing new supplies of copper? Quite simply, they’re running out of ore.
As we have reported, without new capital investments, Commodities Research Unit (CRU) predicts global copper mined production will drop from the current 20 million tonnes to below 12Mt by 2034, leading to a supply shortfall of more than 15Mt. Over 200 copper mines are expected to run out of ore before 2035, with not enough new mines in the pipeline to take their place.
Some of the largest copper mines are seeing their reserves dwindle; they are having to dramatically slow production due to major capital-intensive projects to move operations from open pit to underground.
Grasberg in Indonesia, the world’s second largest copper mine, is emblematic of the problems copper miners are facing. The mine began as a large open pit but after decades of extracting the easy-to-reach ore is gone and future production is expected to come from a deep cave deposit known as the Deep Mill Level Zone. Copper concentrate exports have plunged dramatically as operations shift from open pit to underground.
Major South American copper miners have also been forced to cut production. State-owned Codelco has said it will scale back an ambitious $40-billion plan to upgrade its mines over the next decade, after reporting a drop in earnings, a prolonged strike at its Chuquicamata mine, and lower metals prices. The world’s largest copper company also said it will reduce spending through 2028 by 20%, or $8 billion.
Chuquicamata is expected to see a 40% fall in production by 2021. A $5 billion expansion, moving from open pit to underground, will take five years to reach full output of 300,000 tonnes per annum – this is not new production.
Shipments from BHP’s Escondida mine took a hit in 2019 due to operations moving from open pit to underground. The largest copper mine on the planet is expected to take until 2022 to re-gain full production, again not new production.
These cuts are significant to the global copper market because Chile is the world’s biggest copper-producing nation — supplying 30% of the world’s red metal. Adding insult to injury, for producers, copper grades have declined about 25% in Chile over the last decade, bringing less ore to market.
And here we are stuck at 23 (fr**ging) p. Ned
Sign In
Follow the stocks
