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Preliminary production by the top 10 copper mining companies compiled by IntelligenceMine totalled 9,448 kilotonnes of copper in 2016. That represents a 4% increase compared to 2015 and makes up ~49% of global copper production that reached 19,400 kt last year.
Six out of 10 companies increased their copper output while four of them declined. All companies in the Top 10 that disclose production costs reported significant reduction in copper unit costs.
1. Codelco
Trucks. Chuquicamata mine, Chile. Image: Codelco
Chilean state-owned miner Codelco holds first place worldwide in terms of attributable copper mine output with preliminary estimates of 1,827 kt of copper produced in 2016, including Codelco’s stake in Minera el Abra and Anglo American Sur S.A, – an approximate 3% decline on 2015 (1,891 kt).This drop was mainly due to lower production coming from El Abra, Anglo American Sur and Andina division, partially offset by higher production in Salvador, El Teniente and Radomiro Tomic divisions.
During 2016, Codelco’s cash cost was $1.26 per pound, compared to $1.39 per pound in 2015. A decrease of 9% primarily attributable to lower operational costs and favourable exchange rate movements.
2. Freeport
Cerro Verde copper mine, Peru. Image: Freeport
Headquartered in Phoenix, Ariz., Freeport-McMoRan Copper & Gold Inc. ranks second in global copper competition. It produced about 1,696 kt of copper in 2016 (based on net equity ownership, including discontinued operations), or about 12% higher compared to 2015 (1,514 kt).
This significant growth was achieved because of the Cerro Verde expansion project that achieved capacity operating rates during first-quarter 2016, as well as copper production increase at Grasberg operations currently mining the final phase of the Grasberg open pit, which contains high copper and gold ore grades.
Consolidated average unit net cash costs (net of by-product credits) for FCX’s copper mines (including Tenke) of $1.26 per pound of copper in 2016 were 18% lower than unit net cash costs of $1.53 per pound in 2015, primarily reflecting higher by-product credits and higher sales volumes from Cerro Verde and Grasberg.
3. Glencore
Drilling at Kamoto UG copper mine, DRC. Image: Katanga Mining
In third place, Swiss-based Glencore International plc with copper production from its own sources of ~1,288 kt (approximate number; efforts were made to calculate attributable Glencore’s total mined copper originated from Copper, Zinc and Nickel Operating Divisions, but due to a complex nature of the company’s assets, the exact figure might be slightly different), which is 2% lower than in 2015 (~1,311 kt), reflecting the production suspensions at African Copper, partly offset by improved grades and volumes at the South American assets.
Glencore’s copper unit production costs were $0.87 per pound in 2016.
4. BHP Billiton
Escondida copper mine, Chile. Image: BHP
Ranking fourth, Anglo-Australian BHP Billiton reduced its copper output by 6%, from 1,179 kt in 2015 to 1,113 kt in 2016 calendar year.This decrease was due to reduced volumes at Olympic Dam, maintenance at Pampa Norte and lower copper grades, as planned, at Antamina.
Significant reduction in C1 cash cost during half-year ended December 31, 2016 …read more
Source:: Infomine
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