Downstream purchases turn cautious; spot copper premiums in North China pull back [SMM North China spot copper]

South32 reported on October 19 that attributable payable copper production from Chile’s Sierra Gorda mine reached 18,700 tonnes in the quarter ended September 30, 2026, up 17% quarter on quarter on its 45% ownership basis. Payable copper-equivalent production rose 11% to 22,400 tonnes. Copper feed grades increased from 0.41% to 0.46%, more than offsetting temporary wet-weather disruptions. Sierra Gorda also paid South32 a record quarterly cash distribution of US$153 million. Execution of the fourth grinding line project has commenced. The expansion is expected to increase processing capacity by approximately 25% to 60 million tonnes a year on a 100% basis, with first production targeted for mid-FY2030 and full production rates in FY2031. The project carries estimated capital expenditure of US$725 million. Joint venture partner KGHM expects construction to finish by the end of 2029, with full production capacity reached in the second half of 2030. At Australia’s Cannington silver-lead-zinc mine, payable zinc-equivalent production fell 27% quarter on quarter to 59,200 tonnes. Temporarily reduced paste backfill availability delayed access to planned stopes, prompting the operation to supplement mill feed with lower-grade stockpiles. South32 maintained FY2027 production guidance of 92,000 tonnes.

South32 Limited reported payable molybdenum production of 0.2 thousand tonnes, or about 200 tonnes, from its 45% interest in the Sierra Gorda mine for the September 2026 quarter. Output fell 75% year on year and 50% from the preceding quarter. Payable molybdenum sales were also about 200 tonnes, down 67% year on year and 60% from the preceding quarter. In contrast, payable copper production rose 2% year on year and 17% from the preceding quarter to 18,700 tonnes. South32 cited higher planned copper grades and temporary wet-weather effects but did not explain the molybdenum decline. The figures represent South32’s 45% attributable share, not total mine output or molybdenum concentrate mass.