Peru’s copper output is expected to decline by 0.7% in 2024 to approximately 2.74 million metric tons, marking the first drop after four years of growth. Contributing factors include decreasing ore grades and a lack of new projects. The Democratic Republic of the Congo has surpassed Peru as the second largest copper producer globally, while some Peruvian mines have reported production increases amidst overall declines.
According to Peru’s mining ministry, copper production in 2024 is projected to reach approximately 2.74 million metric tons, marking a decline of 0.7% from the previous year. This decrease signifies the first drop in output after four consecutive years of post-pandemic recovery. Factors contributing to this decline include decreasing ore grades and an absence of new mining projects that could bolster production.
In 2023, the Democratic Republic of the Congo surpassed Peru, becoming the second largest copper producer globally. While exact production figures for the Congo in 2024 have yet to be disclosed, the competition highlights Peru’s shifting position in the copper market. In December alone, Peru produced over 262,000 tons of copper, reflecting a 2.9% increase year-over-year, but this growth is overshadowed by the annual decline.
Peru’s largest copper mine, Freeport McMoRan’s FCX Cerro Verde, experienced a production decrease of 3.7%, attributed to lower ore grades impacting sales forecasts for 2024. Antamina, operated by Glencore and BHP, also saw a slight reduction in output of 0.3%. Similarly, Anglo American’s Quellaveco mine faced a larger decline of 4%, while Glencore’s Antapaccay mine reported a significant 15.7% drop.
Conversely, some companies performed positively; Southern Copper’s output increased by 11%, and MMG’s Minera Las Bambas reported a 6.4% rise in production. These contrasting results suggest variabilities in mine performance, straddling the challenges of declining overall production with pockets of growth in specific operations.
In summary, Peru’s copper production is projected to decrease in 2024, breaking a four-year growth trend. The primary factors include lower ore grades and a lack of new projects. While some mines reported declines, others managed to achieve production increases, indicating a mixed performance landscape in the country’s copper sector. Peru’s position in the global copper market is under threat from the Democratic Republic of the Congo, which has outpaced it in production.
Original Source: www.tradingview.com
