Copper and Nickel Production Struck by Covid and Regional Unrest
Copper and nickel production are lower-than-expected reported australian international mining titan BHP. The drop has been blamed on the absence due to Covid-19 and social unrest throughout Chile, leading copper and nickel production to drop by 10% and 13%, respectively.
Significant episodes of Covid-19 suppressed production in Chile, worsened by roadblocks and social discontent at its Escondida mine. The mine has been the center of debate lately, with a recent legal filing by the Government of Chile opposing the mines managed by BHP, Antofagasta, and Albemarle on the grounds of claimed ‘environmental damage’ in the northern Salar de Atacama salt flats.
Glyn Lawcock, head of resources research at Barrenjoey, stated there was increasing concern in Chile over an “anti-mining underlying current” that seemed to be developing in the government. Concerns over resource nationalism have resulted in situations that constrict copper products due to Chile’s outsized value in the market.
The impact
Because of this, BHP has minimized its maximum projected copper production for the year ending 30 June by 140,000 tonnes and predicted nickel production by 10,000 tonnes. BHP coped better in its iron ore output, its greatest product, with consistent production in the same period.
Competing Rio Tinto has experienced a difficult beginning to the year, struggling to bring on new projects to replace aging mines because of work shortages and supply chain issues. The miner reported that iron ore production had dropped 8% in the March compared to the same period last year.
Brazilian competitor Vale also reported a relatively weak beginning to the year, as substantial rains and functional problems resulted in a 6% decline in production, to 64 million tonnes in the first quarter. These declines will present additional assistance for iron ore prices, as it stays unlikely that either Vale or Rio Tinto will strike their anticipated production targets.
Read the original article on Mining Technology.
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