In the first quarter of the year, Chilean copper production cost rose by 29% compared to the same period in 2022, as reported by the Chilean Copper Corporation (Cochilco).
This increase was attributed to decreased copper production and elevated prices of services.
Cochilco’s report stated that the rise in costs in the initial three months of 2023 resulted from “decreased production and escalated costs of third-party services, salaries, materials, and electricity.”
The report highlighted that the production cost was $2.02 per pound of copper, the primary export of Chile.
It also noted that costs of mining operations are “increasing across the board,” impacting smaller operations the most.
Cochilco’s report encompassed a quarterly analysis of 21 major copper mining operations in Chile, contributing to 91.3% of the copper mine production as of March 2023.
Additionally, Cochilco revised the 2023 average copper price estimate to US$3.85 per pound.
For 2024, the Copper Market Trends Report for the second quarter projected an average price of US$3.75 per pound.
The document also indicated that the global copper production growth outlook for 2023 remains “modest,” forecasting a 2.8% increase from the prior year.
Specifically for Chile, a 1% rise in copper mine production is anticipated, whereas a 4.3% increase is projected for 2024.
The report underscores the challenges encountered by the Chilean copper mining sector due to soaring costs.
It emphasizes the necessity to supervise and manage these expenditures to preserve global market competitiveness.
More: Chile news in English, every day from The Rio Times.
Live Market IntelligenceChile — Live Market Board
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Chile — Live Market Board
-0.66%
174,951.12
+0.21%
66,644.91
+0.53%
11,375.68
-0.66%
3,044,628
+1.18%
2,507.12
-0.05%
60,449.35
+0.64%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IPSA | 11,375.68 | -0.66% | — | 11,450.75 | 11,210 | 10,984 | 1,513,213,483 |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| SQM-B | 65,305 | -0.84% | +49.03% | 65,860 | 66,949 | 64,978 | 76,539 |
| COPEC | 5,964 | -1.09% | -11.70% | 6,030 | 6,100 | 5,960 | 634,331 |
| BSANTANDER | 78.37 | -2.28% | +35.94% | 80.20 | 81.69 | 78.34 | 36,288,711 |
| FALABELLA | 6,334 | -1.48% | +23.28% | 6,429 | 6,450 | 6,300 | 26,085,814 |
| ENELAM | 87.09 | +0.10% | -10.13% | 87.00 | 87.40 | 86.50 | 13,106,417 |
| CENCOSUD | 1,946 | -2.19% | -35.30% | 1,990 | 2,010 | 1,945 | 966,528 |
| CMPC | 1,020 | -1.96% | -29.10% | 1,040 | 1,050 | 1,015 | 3,526,677 |
| BANCO CHILE | 184.96 | -1.01% | +32.87% | 186.85 | 189.99 | 184.33 | 18,101,240 |
| LATAM AIR | 24.08 | -1.11% | +16.61% | 24.35 | 24.59 | 23.88 | 573,612,753 |
| SOUTHERN COPPER | 193.97 | -0.26% | +104.01% | 194.48 | 199.36 | 192.59 | 367,102 |
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