The world’s largest copper producer, Chile, is in record copper output for the month of November 2018. Copper production hit a 13 year high at 540,720 tons on the back of good ore grades and efficient processing, the mining authorities said. This represented a 7% higher output compared to November 2017.
Chiles YTD production was 5.33 million tons, a 6% higher than Jan to Nov. 2017 levels.
Contributors to this record production was Codelco, BHP Billiton, Anglo-American, Glencore Plc and Antofagasta Minerals.
In the same vein, Africa’s second largest producer Zambia recorded a 6.38% more copper in the Jan to Oct period compared to the same period in 2017. Zambia’s red metal tonnage rose to 696,526 metric tons compared with 654,743 metric tons the previous year, this was contained in a Ministry of Finance review note of the economy in 2018 released on 31 Dec. The note attributed the stimulus to healthier metal prices on the LME in 2018 compared to 2017. The Zambian finance ministry projects a higher output for 2018 at over 800,000 metric tons.
Zambia grapples with a mining tax impasse that will see mineral royalty taxes adjust 1.5% higher effective Jan 2019 which the mines have disputed citing the adverse impact on operational costs which will decrease their propensity to invest in mineral exploration.
As at 17.32pm copper was trading for USD5,842/mt. The recent base metal bears are a reflection of the global risk aversion and weak demand for riskier assets following slowing down growth in china coupled with the US -China trade impasse.
