Apr 19, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) Codelco, a state-owned leader in global copper supply from Chile, faces a dip in production this month due to a fatal accident at the Radomiro Tomic mine.
This mine has seen the most substantial drop in production in 25 years.
During an interview in Santiago, Chile's Mining Minister, Aurora Williams, stated that April's copper output is expected to fall.
She highlighted that Codelco has a recovery plan set for the third quarter of the year.
The reduction in output was a major topic at the Cesco Week industry event in Santiago, highlighting concerns over potential copper shortages.
This scarcity is particularly alarming given copper's crucial role in electrical applications essential for the energy transition.
As a result, copper prices on the London Metal Exchange hit a 22-month high this year.
Despite these challenges, officials remain hopeful for a recovery. Chile's production has hit a 20-year low, which has, in turn, pushed copper prices up.
The expansion of the Quebrada Blanca mine is projected to increase production by about 5% this year and 6% next year.
However, this year's forecast is slightly reduced from earlier predictions due to new data.
Recent events at Codelco highlight the need for robust contingency plans to ensure stable production during setbacks.
Such plans are crucial not only for the company but also for the global copper market, which relies on Codelco's supply for manufacturing and construction.
The incident underscores the tight link between the company's production and global copper prices, affecting overall market stability.
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