Project delays prompted a Chilean government agency to temper its projections for copper output in the top-producing country.
It’s the latest sign of the challenges facing the industry as demand for this metal rises.
Cochilco forecasts that Chile’s production will peak at 7.14 million metric tonnes in 2030, according to a document posted on its website.
While that volume is 33% higher than the 2022 levels, it is below the agency’s peak projection a year ago of 7.62 million tonnes in 2028.
New project development is becoming increasingly complex and costly due to greater scrutiny of environmental and social issues and the need to dig deeper.
In the case of Chile, permitting difficulties combined with efforts to raise taxes and rewrite the constitution have led companies such as BHP Group, Antofagasta Plc, and Freeport-McMoRan Inc. to postpone major investment decisions.
State-owned Codelco produced 10% less copper than planned last year due to setbacks at mines and projects, while enduring significant cost increases in its development work.
On Tuesday, Máximo Pacheco, the president of Codelco, said maintaining production “is a tremendous challenge.”
Globally, mines continue to grapple with logistical challenges exposed by the pandemic and exacerbated by Russia’s invasion of Ukraine at a time when demand is expected to recover after China removed “zero covid” policies. Copper futures are up 11% this month.
The reduction in the production forecast was initially reported by Reuters.
With information from Bloomberg