Lockdowns across Chile, Peru and Mexico were a key factor behind a 3.7 per cent collective decline in copper output from the world’s top 10 producers in Q2 2020, from 2.7 million tonnes (Mt) to 2.6Mt, according to GlobalData.
The largest decline in Q2 was observed from Glencore, where production fell by 13.9 per cent year-on-year (YOY) due to lower ore grades and disruptions caused by the COVID-19 outbreak – particularly at the Antamina mine, which also reduced BHP’s output.
Senior Mining Analyst at GlobalData, Vinneth Bajaj, detailed that lower ore grades at BHP’s Pampa Norte (Spence and Cerro Colorado mines), Antofagasta’s Centinela Concentrates and lower rates at KGHM’s Robinson and Franke mines were key factors behind the declines in the other major producers’ output during the second quarter.
Major operating mines that were closed as a result of the COVID-19 pandemic for significant periods in Q2 were Chuquicamata, Cobre Panama, Antamina, Las Bambas and Cerro Verde. Development work was also halted at the Los Pelambres and El Teniente mines.
Global copper production (million tonnes) 2020. Image credit: GlobalData, Mining Intelligence Center.
Overall production of copper is forecast to drop by 1.5 per cent in 2020, falling to 20.3Mt, according to GlobalData. Steep declines are forecast for Chile and Peru.
While Chile was initially relatively unaffected at the start of the quarter, with Codelco having to halt on-site construction activities at Chuquicamata and El Teniente, rising cases led to mounting pressure from workers and the temporary shutdown of Chuquicamata at the end of June. Overall, production in Chile is expected to decline by 2.3 per cent in 2020.
“Although operating activities in Peru resumed at the end of May, COVID-19 restrictions have disrupted the momentum of several copper mines, including the Las Bambas, Constancia, Toromocho and Cerro Verde, with production in Peru set to decline by 7.2 per cent in 2020,” Bajaj said.
