Copper production in Chile faces severe challenges

SMM: according to the BNAmericas website, the (Cochilco) of the Chilean Copper Commission is worried that if new projects and mine expansion plans cannot be carried out as scheduled, the country's copper production will face severe challenges.

On the 19th local time, Jorge Cantalopts (Jorge Cantallopts), director of the Cochilco Research and Public Policy Department, said, "Chile currently has a large number of projects to increase annual copper production to more than 6 million tons, or even 7 million tons." It's just potential. The question is how can we achieve this goal? "

Cantalopts believes that Chile should create conditions to speed up the project, promote the sustainable development of the copper mining industry and extend the industrial chain.

In April, Cochilco predicted that copper production would fall by 200000 tons this year, mainly because of the impact of the global epidemic. But on Thursday, Cochilco expects copper production to fall by no more than 100000 tons.

Chile is the world's largest copper producer, producing 5.78 million tons of copper in 2019.

"if there is a second wave of outbreaks, the situation will change. It depends on when and how much the vaccine works. " Cantalopts added.

Juan Carlos Guajado (Juan Carlos Guajardo), president of consulting firm Plath Mining (Plusmining), believes that investors will adopt a wait-and-see attitude rather than make investment decisions over the next two years because of the uncertainty of the Chilean constitution.

"there will be great changes next year. The work on the project is mainly focused on feasibility study and design, and investors will wait and see carefully before the new constitution is promulgated, "he said.

Scholars believe that the US election stimulated the stock market to rise, causing global commodity prices to rise. However, a new round of Covid-19 outbreaks cast a shadow over the copper market.

The average price of copper is expected to be $2.9-$3 per pound in 2021.