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Chile copper output drops 6.7% in November as unrest takes toll

https://www.chemnet.com   Jan 02,2020 S&P Global Platts
Chile produced 504,366 mt of copper in November, down 6.7% from the same month a year earlier, as the unrest which has rocked the South American country for several weeks from mid-October appeared to slow mine output.

Despite the annualized fall, the figure is still a strong one for the world's largest copper producer, representing a 2.1% increase from the previous month of October and the second-best figure for production this year.
Statistics agency INE attributed the fall in copper production to stoppages and operational problems at several major mines as well as the high base of comparison in November 2018.

Workers at several mines, including BHP-controlled Escondida and state-owned Codelco, held stoppages in sympathy with the cost of living protests which have left more than 20 people dead and thousands injured or under arrest.

Barricades on access roads, port strikes and urban unrest have also hindered the transport of personnel and key supplies and the delivery of metals and minerals to port for shipping, mining companies have said. Last month, Antofagasta estimated that the unrest would reduce production at its operations in Chile by around 10,000 mt of copper during the fourth quarter.

There were also lengthy strikes at Antofagasta's Antucoya and Teck's Carmen de Andacollo mines.

The recent troubles may mean Chile struggles to match record output of 5.832 million mt reached last year. Production during the first 11 months of the year reached 5.28 million mt, down 1.1% from the same period of 2018.

Production of molybdenum reached 4,685 mt during November, down 13.5% from the same month of 2018, but up 5.6% from October. Production during the first 11 months reached 49,785 mt, down 11.1% from a year earlier.

A key byproduct in several of Chile's large copper mines, production of the metal has been hit by flooding and strikes which slowed copper production in the early part of the year, as well as lower ore grades.

Production of gold reached 3,079 kg in November, down 13.6%, but was still up during the first 11 months of the year to 34,763 kg.

Silver production fell 12.4% to 106,827 kg but fell 4.6% during the first 11 months of the year to 1,068,931 kg.
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