Ivan Arriagada, CEO of Chilean miner Antofagasta, foresees a potential increase in copper prices for 2024, driven by growing demand and supply constraints. He highlighted the favorable scenario created by an improving global economy and the rising need for copper in electric vehicles, solar panels, and other components crucial to the energy transition.
Arriagada indicated that the trajectory for copper prices is expected to trend higher in 2024 compared to last year’s range of $3.80 to $3.85 per pound. Analysts have projected a potential supply deficit, following indications of less robust supply than previously anticipated, including the closure of First Quantum’s mine in Panama and downward revisions in production guidance by Anglo American and Vale Base Metals.
Addressing the challenge of boosting supply, Arriagada emphasized Antofagasta’s focus on organic growth through existing projects, with potential for acquisitions in the Americas. The company recently acquired a 19% share in Peru’s Buenaventura, with plans for transitioning to copper production at some of its gold mines where reserves are depleting.
In Chile, Antofagasta aims to increase production at its Pelambres mine with the implementation of a new desalination plant, and expects to commence operations at the Centinela concentrator in 2027. These initiatives are projected to elevate production to approximately 900,000 metric tons, up from the current outlook of 670,000 to 710,000 metric tons, offering a strategic approach to mitigate the decline in copper ore grade over time.