Chile's Cochilco says large-scale copper mining costs keep growing
Reuters
Published Oct 25, 2023 05:17
SANTIAGO (Reuters) - The costs of large-scale copper mining in Chile kept rising due to lower production and rising service costs, a report from the state-run Chilean Copper Commission (Cochilco) said on Tuesday.
The report, which covers the first half of the year, said that the direct cost reached 198.8 cents per pound, a year-on-year increase of 39.6 cents.
"Lower production and the increase in the costs of third-party services, remunerations and prices of materials, electricity and TC-RC (treatment and refining) charges, explain the increase in costs in the first semester," the report said, adding that smaller operations were the most affected by the cost increase.
The report sampled 22 mining operations, which represent 93.5% of production. Out of those, 19 had cost increases. The smallest producer in the sample produced 102,800 metric tons of copper.
The report noted a few factors that counteracted cost increases like higher credits for the sale of molybdenum and gold, the decrease in the cost of sulfuric acid, freight and diesel.
Chile is home to state-owned Codelco, the world's largest copper producer, as well as other mining giants like BHP (ASX:BHP), Glencore (LON:GLEN), Anglo American (JO:AGLJ) and Antofagasta (LON:ANTO).
(Report by Fabián Andrés Cambero; Writing by Alexander Villegas; Editing by Rod Nickel)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.