Chile Escondida 1st Half Copper Output Down 28% On Year To 520,899 Trillion
08 August 2009 - 12:11AM
Dow Jones News
Escondida, the world's largest copper mine located in northern
Chile, produced 520,899 metric tons of copper in the first half of
2009, down 28% from the 725,177 tons in the same period last year,
the mining company said Friday.
The drop was due to falling ore grades at the mine and
production problems associated with its Laguna Seca SAG mill
concentrator, which resulted in the plant operating at a lower
capacity, Escondida said.
During the six-month period, Escondida produced 356,798 tons of
copper contained in concentrates, down 41% from the same period a
year earlier.
The company said that copper cathode production, however, rose
34% to 164,101 tons due to "improved recovery and an increase in
the level of activity and ore accumulation in the process
stockpiles."
In the first half, Escondida posted a net profit of $1.1
billion, down 73.2% on the year.
In the six months ended June 30, the average price per pound of
copper on the London Metals Exchange was $1.84, down 50.1% from the
average $3.68 recorded for the same period in 2008.
Escondida is controlled and operated by diversified global miner
BHP Billiton Ltd. (BHP), which has a 57.5% stake. Anglo-Australian
mining company Rio Tinto PLC (RTP) holds 30% of Escondida, with an
additional 10% held by a Japanese consortium led by Mitsubishi
Corp. (8058.TO) and the remaining 2.5% by International Finance
Corp.(IFC.KW), the private-sector unit of the World Bank.
Minera Escondida is an open pit mine located 170 kilometers
southeast of Antofagasta, at 3,100 meters above sea level.
-By Julian Dowling, Dow Jones Newswires; 56-2-820-4241;
julian.dowling@dowjones.com