• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 21 mins How to Create a Pandemic
  • 37 mins KSA taking Missiles from ?
  • 7 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 50 mins A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 5 hours Trump eyes massive expulsion of suspected Chinese spies
  • 13 hours >>The falling of the Persian Gulf oil empires is near <<
  • 10 hours Where's the storage?
  • 6 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 4 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 7 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 5 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 12 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Copper Prices Under Pressure As Peru/Ecuador Ramp Up Production

Copper prices have moved up a little the last few days, after nearing $2.05/lb during the past week. But news from two countries this week suggests caution is the word for the red metal.

One of these spots to watch is Peru. Where officials announced a major increase in copper production — and forecast that the coming year will see an even bigger rise in output.

Local press reported Friday on stats from Peru’s central reserve bank, showing that the country’s October copper production was up 34.8% as compared to October 2014. Related: Outlook For Oil In 2016 Still Grim

The rise reportedly came mainly from two sources: the Constancia mine commissioned earlier this year by HudBay Minerals. And increased output from Antamina mine owned by Teck Resources, BHP Billiton, and Glencore.

That’s a big jump in national output. And Peruvian officials this week said there’s a lot more coming.
The country’s minister of energy and mines Rosa María Ortiz was quoted in local press saying that Peruvian copper production will jump 65.5% in 2016 — to an expected 2.5 million tonnes of metal for the year.

That comes as the Las Bambas mine — developed by China’s MMG — is expected to start first production in February. With 2016 output forecast at 250,000 to 300,000 tonnes, ramping up to 400,000 tonnes in 2017. Related: America’s Top Shale Gas Basin in Decline

And that wasn’t the end of new copper announcements in this part of the world. With Peru’s neighbour Ecuador also saying it has started up a new copper mega-project this week.

Ecuador’s government announced Monday that development has officially begun at the Mirador project — also operated by a Chinese firm, Ecuacorriente.

First production from Mirador is expected in 2018, with output here also being significant — at an expected 370,000 tonnes of copper per year. Related: Hydricity: Power Source of Future?

All of which suggests there’s a steady and growing stream of new copper production coming from this world-leading region — even at today’s prices. It’s of course likely much of this new supply will be headed back to China, but even so the dampening effect on global prices could be notable.

This raises the issue of whether other big end users of copper like Japan and Korea will intensify their search for competing supply sources (Japanese government firm JOGMEC just happened to be in Chile this week for meetings with the country’s Copper Commission). Watch for developments across South America and beyond.

Here’s to big dreams

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News