{"id":1123835,"date":"2019-06-28T16:49:04","date_gmt":"2019-06-28T16:49:04","guid":{"rendered":"https:\/\/www.mining.com\/?p=995306"},"modified":"2019-06-28T16:49:04","modified_gmt":"2019-06-28T16:49:04","slug":"chuquicamata-strike-to-dent-chiles-copper-output","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1123835","title":{"rendered":"Chuquicamata strike to dent Chile\u2019s copper output"},"content":{"rendered":"<p>About 3,200 unionized workers at Codelco\u2019s Chuquicamata copper mine in Chile returned to the operation on Friday, <a href=\"https:\/\/www.mining.com\/chuquicamata-strike-to-dent-chiles-copper-output\/\"  rel=\"noreferrer noopener\" aria-label=\"ending a two-week strike (opens in a new tab)\">ending a two-week strike<\/a> that push the metal price and <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mining.com\/strike-at-chiles-largest-copper-mine-triggers-fresh-fears-of-supply-shock\/\" >triggered fresh supply fears<\/a>.<\/p>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<p>The mine, Codelco\u2019s second largest by size, had been<br \/>\noperating at over 60% capacity during the 14-day strike, according to the state-owned<br \/>\ncompany.<\/p>\n<p>BMO Capital Markets analyst Colin Hamilton estimates lost production at 7,000 tonnes, which applying <a href=\"https:\/\/www.mining.com\/chiles-codelco-has-already-lost-17-5-million-on-chuquicamata-strike\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">a separate evaluation<\/a> by Chilean mining consultant PLUSmining, adds up to $35 million.<\/p>\n<p>Tanner Investments\u2019 Felipe Valenzuela <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.df.cl\/noticias\/economia-y-politica\/macro\/huelga-en-chuquicamata-golpeara-la-produccion-de-cobre-y-le-restara\/2019-06-27\/190024.html\" >forecast a 2.8% decline<\/a> in Chile\u2019s copper output for June as a consequence of the labour action. <\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Analysts estimate Codelco&#8217;s lost production at 7,000 tonnes or roughly $35 million.<\/p>\n<\/blockquote>\n<\/figure>\n<p>Mining, he says,&nbsp;makes up 11% of Chile\u2019s&nbsp;Gross<br \/>\nDomestic Product&nbsp;(GDP), while Chuquicamata\u2019s production \u2014 321,000 tonnes<br \/>\nof copper last year \u2014 represents only 5.5% of the country\u2019s total output.<\/p>\n<p>Codelco, which last month reported an 18% year-on-year drop<br \/>\nin its first-quarter copper output, is in the midst of&nbsp;<a href=\"https:\/\/www.mining.com\/codelco-goes-ahead-scaled-back-underground-extension-chuquicamata\/\"  rel=\"noreferrer noopener\">a $5.6 billion project<\/a>&nbsp;to turn century-old<br \/>\nChuquicamata into an underground mine.<\/p>\n<p>The last blast at the bottom of the open pit was&nbsp;<a href=\"https:\/\/mining.com\/103-years-chiles-codelco-blasts-chuquicamata-pit-last-time\/\"  rel=\"noreferrer noopener\">carried out in November<\/a>, though copper extraction goes on.<br \/>\nThe company has said it plans to gradually decrease activities<\/p>\n<p>Chuquicamata\u2019s switch is&nbsp;part of Codelco\u2019s 10-year, $39<br \/>\nbillion-overhaul of its core assets,&nbsp;and is expected to extend the iconic<br \/>\nmine\u2019s life by at least 40 years. It will also allow the copper giant to keep<br \/>\nup production rates, despite falling ore grades and increasing costs at its<br \/>\noperations.<\/p>\n<p>Annual production from \u201cChuqui\u201d \u2014 as locals call it \u2014 once<br \/>\nit has fully transitioned to underground extraction is projected to be 320,000<br \/>\ntonnes of fine copper and 15,000 tonnes of molybdenum.<\/p>\n<p>Codelco, which hands over all of its profits to the state,<br \/>\nholds vast copper deposits, accounting for 10% of the world\u2019s known proven and<br \/>\nprobable reserves and about 11% of the global annual copper output with 1.8<br \/>\nmillion metric tonnes of production.<\/p>\n<h2><strong>Ugly trend<\/strong><\/h2>\n<p>The world\u2019s main copper producing nations have been&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/mining.com\/zambias-just-deepened-worries-sinking-global-copper-output\/\" >showing output declines this year<\/a>, according to&nbsp;<a href=\"https:\/\/www.icsg.org\/index.php\/component\/jdownloads\/finish\/114\/2932?Itemid=\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">the International Copper Study Group<\/a>&nbsp;(ICSG).<\/p>\n<p>Global production declined 2.4% in February 2019, when<br \/>\ncompared to the same month last year, with 1,515kt (19,749ktpa) of contained<br \/>\ncopper produced globally.<\/p>\n<p>Chile led the pack with output down 7.1 % y\/y to 415.9kt<br \/>\n(5,412ktpa) while Peru, the second main global producer, saw its output fall by<br \/>\n5.1% y\/y to 176.1kt (2,296ktpa).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts forecast a 2.8% decline in the country&rsquo;s June copper output.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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