Copper output from world’s top ten producers declined in second-quarter

Total copper output for the top ten producers during the quarter was 2.6-million tonnes, down from 2.7-million tonnes in the second quarter of 2019.

Overall production of copper is forecast to decrease by 1.5% to 20.3-million tonnes this year, with steeper declines in Chile and Peru.

While Chile was initially relatively unaffected at the start of the quarter, with Codelco having to just halt on-site construction activities at the Chuquicamata and El Teniente operations, rising cases led to mounting pressure from employees and the temporary shutdown of Chuquicamata at the end of June.

Overall, production in Chile is expected to decline by 2.3% this year.

However, the largest decline in the second quarter was observed by Glencore, where production fell by 13.9% year-on-year owing to lower ore grades and disruptions caused by the Covid-19 outbreak – particularly at the Antamina mine, in Peru, which also reduced BHP’s output.

GlobalData senior mining analyst Vinneth Bajaj says the lower ore grades at BHP’s Pampa Norte mine and Antofagasta’s Centinena 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 pandemic for significant periods in the second quarter were those of Chuquicamata, Cobre Panama, Antamina, Las Bambas and Cerro Verde.

Development work was also halted at the Los Pelambres and El Teniente mines.

“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 [operations], with production in Peru set to decline by 7.2% in 2020,” comments Bajaj.