Antofagasta plc's CEO, Iván Arriagada, announced a 20% increase in copper production in the second quarter of 2024, despite lower grades at Los Pelambres and Centinela. The company's H1 2024 production was close to the levels seen in H1 2023. The Phase 1 Expansion Project at Los Pelambres led to higher ore processing volumes, and the company expects production in the second half of the year to include drawdowns from concentrate inventories. At Centinela, lower recoveries were impacted by elevated levels of clay and fines in processed ores.
Arriagada highlighted the company's consistent investment throughout the commodity cycle, resulting in growth and a portfolio of high-quality, long-life operations. Construction work at the Second Concentrator Project at Centinela is progressing ahead of schedule, and the Phase 1 Expansion Project at Los Pelambres has successfully ramped up to nameplate capacity. The company is now working on doubling the capacity of the desalination plant and constructing a new concentrate pipeline at Los Pelambres.
The CEO emphasized that these investments will add growth and long-term security to the company's portfolio, particularly in light of the increasing recognition of copper's fundamental role in the energy transition. Antofagasta plc expects full-year production to be in the lower end of the guidance range of 670-710,000 tonnes, with adjusted cash cost guidance.
For more details, the full announcement can be found on the Antofagasta plc website.