Antofagasta, the Chilean miner, expects annual copper production in 2022 to be lower than last year's as the country's operations continue to be affected by the longest drought in decades.
The company's copper production for 2021 has already fallen 1.7 percent to 721,500 tonnes and is expected to fall 660,000 to 690,000 tonnes this year due to low grades of copper in some operations and water shortages.
The Los Pelambres mine in Antofagasta has been one of the company's worst affected by the lack of rainfall.
In central Chile alone, where the mine is located and where most of the country's population and major copper deposits are located, rainfall has fallen by more than 30 percent in the past 20 years.
The drought has affected not only miners but also farmers and winemakers, leading authorities to reform the country's water laws.
CEO Ivan Arriagada noted that the company is preparing to open a desalination plant in the second half of this year, which will provide a long-term solution to Los Perambrez's persistent water shortage.
Ariagada also drew attention to a number of favourable long-term trends in the copper market.
"Demand conditions for copper continue to be strong as the metal is critical to economic activity and green investment programmes such as electric vehicles, infrastructure and renewable energy," he said. .
Antofagasta is expanding the Los Perambres concentrator, which is scheduled for completion in early 2023.
The main cause of the COVID-19 disease is the impact of COVID-19, and the company is a leading member of the Luksic family in one of Chile's richest countries. The Government has forecast that capital expenditure will rise to $1.7 billion to $1.9 billion this year.
Net cash costs for the year are estimated at $1.55 per pound of copper, up from $1.20 per ounce of $2021, reflecting lower production and increased input costs, particularly for sulphuric acid.
