The costs of large copper mining in Chili maintained their upward trend in the first half of the year due to lower production and an increase in services, a report from the state Chilean Commission of the Copper (Cochilco).
In its cost observatory for the first semester, the agency indicated that the direct cost reached 198.8 cents per pound, a year-on-year increase of 39.6 cents.
“The lower production and the increase in the costs of third-party services, remunerations and prices of materials, electricity and TC-RC charges (treatment and refining), explain the increase in costs in the first semester”said Cochilco.
“The general increase in the costs of mining operations in the sample continues. “Smaller operations are the most affected by the rise in costs, being in the third and fourth quartiles of the cost curve.”he added.
The lowest production was 102,800 metric tons of copper in the comparison, with 19 of the 22 operations in the sample with cost increases.
On the contrary, higher credits for the sale of molybdenum and gold, the decrease in the cost of sulfuric acid, and the price of freight and diesel were aspects that counteracted the increase in costs.
The report considers a sample of 22 large mining operations, which represents the 93.5% of the production.
In addition to the state giant Codelco, important global players such as BHP, Glencore, Anglo American and Antofagasta operate in the country.
Source: Reuters
Source: Gestion
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