Global Copper Prices are Expected to Increase Further as Output Growth in Chile is Lower than Expected

According to a government report disclosed by the media, Chile's National Copper Council (Cochilco) expects that the growth rate of Chilean copper output from 2021 to 2030 will be slower than previously expected, and the peak time will be delayed.

The report comes as violence extended in Peru, which has affected the production at several copper mines in the country. Global copper prices are likely to increase further as copper output in Chile may increase less than expected.

Cochilco blamed delays in mining projects in Chile for the slowdown in copper output growth.

Political uncertainty in Chile has reduced the country's appeal as the world's top copper producer.

Since left-wing President Gabriel Boric took office, Chile has been planning to increase taxes on the mining industry and consider nationalising mining assets.

The Chilean government refused to grant a license to the Dominga iron-copper project this month, citing environmental concerns.

Chile's National Mining Association (Sonami) criticised that the project is technically sound and the government's veto is motivated by political considerations.

On Wednesday, the chief executive of US mining giant McMullan said the company would suspend the expansion projects in Chile until there is more clarity on the political situation in the country.