According to the International Copper Study Group – ICSG bulletin dated 19th June 2020, first quarter copper mine production increased by about 0.5% with concentrate production remaining essentially unchanged and solvent extraction-electrowinning (SX-EW) increasing by 3%. Global mine production rose about 2% in January and February offset by the 2.5% slump in March as COVID19 disease impact weighed supply chains and smelter feeds on the back of global lockdown.
DRIVERS OF COPPER MINE PRODUCTION
Bad weather and COVID weighs Peru’s production. Partial paralysis of the mining industry in Peru due to disease pandemic coupled with operational challenges and adversity in weather led to a 25% decline in production in March, with the full first quarter production declining 12%.
Chile and DRC did better than 2019. Chiles copper production rose 1% recovering from production constraints in early 2019. Chilean SX-EW output increased by 5%, while Africas number one red metal hotspot the Democratic Republic of Congo (DRC) recorded 4% rise in production from ramp-up mines more than offset the temporary closure of a major mine in December 2019.
COVID hit Chinese production. Chinese copper mine production declined by 4% mainly due to the temporary suspension of a number of mines due to COVID-19 related restrictions.
Different ore zones boosted Indonesia’s contribution. Indonesia’s production expanded by 14% as output levels improved following the transition of the country’s major two copper mines to different ore zones in 2019.
Other drivers were Panama which has recently started to produce copper in March.
The Kwacha Arbitrageur.