13 Jan 2015
Slump in Copper not enough to trigger deep production cuts
FXStreet (Mumbai) - With the London Copper trading below USD 6000 for the first time since October 2009, a tenth of world’s top miners are likely to suffer losses despite which the production cuts may not be significant.
The metal’s 16% slide since July is the biggest since 2003. As per Robert Edwards, managing consultant for mining costs at consultancy CRU, “the pain would be more acute and unsustainable at USD 5,000 per tonne. At that point “tangible cutbacks” can be expected.”
However, some incremental projects have been affected reports Reuters. Antofagasta will shutter its small Michilla operation in Chile this year because it has become uneconomic.
Moreover, a prolonged low price may force to scale back their production. As per Bruce Allway, analyst at GFMS, owned by Thomson Reuters, “If, as we expect, copper prices remain under pressure in coming months, other producers at the upper end of the cost curve may opt to follow suit. “
The metal’s 16% slide since July is the biggest since 2003. As per Robert Edwards, managing consultant for mining costs at consultancy CRU, “the pain would be more acute and unsustainable at USD 5,000 per tonne. At that point “tangible cutbacks” can be expected.”
However, some incremental projects have been affected reports Reuters. Antofagasta will shutter its small Michilla operation in Chile this year because it has become uneconomic.
Moreover, a prolonged low price may force to scale back their production. As per Bruce Allway, analyst at GFMS, owned by Thomson Reuters, “If, as we expect, copper prices remain under pressure in coming months, other producers at the upper end of the cost curve may opt to follow suit. “