The locks in Chile, Peru and Mexico, the closure of some of the world’s largest copper mines, were a key factor in the collective decline of 3. 7% in copper production from the world’s 10 largest manufacturers at the time of the 2020 quarter, from 2. 7 Mt to 2. 6 mt
Total copper production is expected to fall by 1. 5% in 2020 to 20. 3 Mt, according to GlobalData.
The biggest drop in the current quarter was noticed in Glencore, where production fell by 13. 9% year-on-year due to declining ore laws and disruptions caused by the COVID-19 outbreak, specifically at the Antamina mine, which also reduced BHP production.
Vinneth Bajaj, Senior Mining Analyst at GlobalData, comments:
“BHP’s lower Pampa Norte ore laws, Antofagasta Sentinel concentrates and KGHM’s Robinson and Franke mines decline rates were the main points of the decline in production by other primary manufacturers this quarter. “
The main operational mines that were closed as a result of the COVID-19 pandemic for significant periods at the time of the quarter were Chuquicamata, Cobre Panama, Antamina, Las Bambas and Cerro Verde, while development paintings also stopped at los Pelambres and El Teniente mines.
Global copper production is expected to fall by 1. 5% by 2020, with steeper declines in Chile and Peru.
Although Chile was not affected in the first place at the beginning of the quarter, as Codelco only had to stop the structure activities at the site in Chuquicamata and El Teniente, construction in some cases led to increased staff tension and the transient closure of Chuquicamata at the end of June.
Overall, production in Chile is expected to decline to 2. 3% by 2020.
Bajaj adds:
“Although mining activities in Peru resumed at the end of May, COVID-19 restrictions disrupted the dynamics of several copper mines, Las Bambas, Constancia, Toromocho and Cerro Verde, and production in Peru is expected to decline by 7. 2% by 2020. “