Copper production from the world’s top ten mining companies decreased in 2020, albeit by a marginal 0.2 per cent to 11.76 million tonnes (Mt). While the initial impact of the COVID-19 pandemic on mining operations was immense, six of the ten largest producers increased the output. In 2021, production from the top ten copper companies is expected to bounce back, rising by up to 3.8 per cent, to reach 12.2 Mt, according to GlobalData.
The highest increase in copper production was by Canada’s First Quantum, which, despite all the challenges, reported a 10.4 per cent growth in 2020. The company’s Sentinel mine in Zambia and Cobre Panama were key contributors to this growth. While the latter remained under care and maintenance between April and August 2020, it delivered record production levels during the subsequent months.
Associate Project Manager at GlobalData, Vinneth Bajaj, said despite Codelco reporting over 3,400 active cases during July 2020, the company achieved 1.2 per cent growth in its production in 2020.
“The company implemented a four-phase plan, as part of the COVID-19 measures, to ensure the health and safety of its employees, while also avoiding any significant impact to its copper output.”
Although the overall impact was minimal, declines in production were observed from Glencore (8.2 per cent), Antofagasta (4.7 per cent), BHP (3.9 per cent) and Freeport McMoRan (1.3 per cent).
Reduced operational workforces due to COVID-19 measures, lower ore grades and production halts due to maintenance were the key disruptors to output during 2020.
Vinneth added that robust growth is expected from American mining company Freeport McMoRan, which provided 1,723.6 kilotonnes of copper guidance for 2021, 18.5 per cent higher versus 2020 output, backed by the commencement of its recently expanded Grassberg mine in Indonesia.
“Additionally, around 9.1 per cent growth is expected from First Quantum and 5.3 per cent higher copper cathode output is expected from Jiangxi. The growth will also be supported by production from other operating mines such as Escondida, Collahuasi, El Teniente, Cerro Verde, Buenavista and Antamina.”
