SP Angel on new copper mines being financed to meet supply deficit: Copper US$ 5,843/t vs US$5,881/t yesterday
Suffering from sustained deficit, the global copper market received a boost as Latin America’s second-largest copper producer, Southern Copper Corp, is awarded the licence to mine the giant Tia Maria project.
The Peruvian government awarded the licence to start construction of its $1.4bn Tia Maria project, which has been delayed at least since 2010 amid sometimes deadly protests. Southern Copper report it won’t start building the mine until concerns from local communities are resolved.
Southern Copper plans to invest more than $10bn to boost production to 1.81mt by 2026 from 987,000t projected this year, Chief Financial Officer Raul Jacob said.
Southern Copper’s operations at Tia Maria will not affect other economic activities in the Tambo valley because it will use desalinated water, according to the statement. The company will build an industrial railway to carry mine supplies and copper ore, as well as a road access to the mine at a “prudent distance” from the Tambo valley, it said.
Tia Maria is expected to produce 120,000t of copper annually. The market is currently expected to post a 189,000t deficit by the end of this year, according to the International Copper Study Group.