Quebrada Blanca Phase 2 Commissioning Delighted Spot Copper Concentrate Market

As of last Friday April 7, the SMM Imported Copper Concentrate Index (weekly) stood at $81.76/mt, $1.43/mt higher than the previous week. During the week, the spot trading between traders and smelters was relatively lukewarm. Inquiries by buyers improved after the CSPT finalised the spot copper concentrate guidance TCs for the second quarter of 2023 at $90/mt and $0.09/lb. The current offers for clean ore scheduled for the shipment in the second quarter exceed $78/mt. Some buyers refrained from purchasing in anticipation of more supply. Traded TCs exceeded $85/mt. The price coefficient of Cu 20% domestic ore stood at 88.5-89.5%.

Teck Resources officially commissioned its Quebrada Blanca Phase 2 (QB2), and the positive expectations of the supply have been fulfilled. On March 31, 2023, Teck Resources announced that its QB2 in Chile had produced the first batch of bulk copper concentrate and planned to reach full production by the end of 2023. By 2026, its annual copper output is projected to reach 285,000-315,000 mt. According to SMM survey, QB2’s copper output will reach 245,000 mt with metal content in 2023. Newcrest Mining and Harmony Gold have signed an agreement with the Papua New Guinea government on the joint development of the Wafi-Golpu copper-gold mine project and finalised some key terms. The 28-year life Wafi-Golpu copper-gold mine can produce 161,000 mt of copper and 266,000 oz of gold annually.