Antofagasta Minerals Expects to Produce At Least 670,000 Tons of Copper This Year

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Antofagasta Minerals (London, England) produced 20% more copper in the second quarter, closing the period with output of 155,300 tons of copper. The mining firm operates primarily in Chile. In the first half of the year, the company produced 284,700 tons of copper, or 3.7% less than the volumes seen between January and June last year.

The company mined lower grades from its Los Pelambres and Centinela projects in Chile in first-quarter 2024. However, in the second quarter, processing levels at Los Pelambres were higher due to the completion of the Phase 1 expansion project. This will also lead to higher processing volumes for the rest of the year, including higher production from drawdowns from concentrate inventories accumulated in February. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for project reports tied to the Los Pelambres expansion.

As a result, the company expects to end the year with an output at the lower range of its guidance set between 670,000 tons and 710,000 tons of copper. In 2024, the company projects a cash cost guidance before and after by-product credits at US$2.40 per pound and US$1.70 per pound, respectively.

The company owns the projects of Antucoya (70%), Zaldivar (50%), Centinela (70%), and Los Pelambres (60%), with the latest two representing its largest share of production.

In April, the Centinela project started construction of a second concentrator after securing US$2.5 billion in financing. The concentrator will add 170,000 tons of copper-equivalent production to the mine and is expected to start operations by 2027. Subscribers can click here for projects linked to the Centinela operation.

"These investments will add long-term growth and security for the future of our production, at a time when there is clear and widespread recognition of the fundamental role of copper in the energy transition," said Antofagasta Chief Executive Officer Iván Arriagada.

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