SANTIAGO – Growing demand for copper along with supply constrictions could push prices higher than last year in 2024, the head of Chilean miner Antofagasta said.
Speaking ahead of the World Copper Conference that begins on Monday, Antofagasta CEO Ivan Arriagada said an improving global economy plus the increasing need for the metal used in electric vehicles, solar panels and other elements key to the energy transition created a favorable scenario.
“The trajectory we foresee is towards higher levels,” he said in an interview last week, compared with last year’s prices that he said were in the range of $3.80 to $3.85 per pound.
Analysts have forecast a deficit from this year on signs that supply may not be as robust as previously thought after Panama ordered the closure of First Quantum’s 350,000-metric ton mine and producers Anglo American and Vale Base Metals both lowered their guidance for 2024 and 2025.
Arriagada also said boosting supply would be a challenge.
Increase production
Antofagasta, Chile’s biggest copper miner after state-run Codelco, is aiming at organic growth through existing projects, although Arriagada said he did not rule out the possibility of acquisitions, as long as they are in the Americas.
Antofagasta, which is listed on the London Stock Exchange, bought a 19% share in Peru’s Buenaventura late last year, and two Antofagasta executives recently joined the Buenaventura board. The Peruvian company is looking at transitioning to copper production at some of its gold mines where reserves are diminishing, Arriagada said.
In Chile, Antofagasta expects to increase production at its flagship Pelambres mine due to a new desalination plant, and begin operations at the Centinela concentrator in 2027, projects that Arriagada said will help lift production to about 900,000 metric tons from this year’s outlook of 670,000 to 710,000 metric tons.
“There could be more investments in the future that eventually help us have more production, but for now, this is our focus,” Arriagada said, noting the importance of boosting production to mitigate the year-by-year deterioration of copper ore grade.
