BHP’s Escondida has increased production back to normal levels following strikes last year.  Image: BHP.

 

BY CAMERON DRUMMOND

 

GLOBAL March quarter copper production decreased 4.8 per cent quarter-on-quarter as only one-third of the top 15 producers reporting an increase in output, according to S&P Global.

 

Production from the top 15 producers in the 2018 March quarter fell by 136,548 tonnes (t), or 4.8 per cent, compared the December 2017 quarter. However, output rose by 14.8 per cent, or 345,725t, on an annual basis in the March quarter.

MMG, Grupo México and Vale sustained the bulk of those losses, with Vale recording the biggest fall – down 20.3 per cent – due to unscheduled mine maintenance and lower processed ore grades across some of its operations.

MMG reported a loss in production of 31,799t, or 19.9 per cent, primarily due to geotechnical instability at its Las Bambas mine in Peru; and Grupo Mexico was down 10.4 per cent due to a landslide at its Mission mine.

BHP Billiton and Rio Tinto reported the largest year-on-year production gains, primarily driven by the resumption of normal operations at Escondida, of which they have 57.5 per cent and 30 per cent stakes respectively.

In the March 2017 quarter, output at Escondida fell to 94,900t due to strikes by union workers. Its 2018 March quarter output more than tripled that figure, totalling 322,000t.

BHP’s stronger first-quarter performance was also boosted by increased output at its 33.8 per cent owned Antamina mine; its share of production was up to 35,200t, from 29,200t in the first quarter of 2017.

Although virtually flat year-on-year, production at BHP’s Olympic Dam more than tripled to 40,500t quarter-on-quarter as the mine ramped up production following a smelter maintenance campaign.

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