• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours EU has already lost the Trump vs. EU Trade War
  • 2 days Science: Only correct if it fits the popular narrative
  • 12 mins Impeachment S**te
  • 2 days Crazy Stories From Round The World
  • 5 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 10 hours Everything You Need To Know About Trump
  • 2 hours 55.00 WTI
  • 2 hours Visualizing Pennsylvania Oil & Gas Production (Through September 2019)
  • 1 day IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 4 hours Water, Trump, and Israel’s National Security
  • 2 days Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 2 days Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 1 day ‘If it saves a life’: Power cut to 1.5 million Californians
  • 10 hours Last I Checked
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

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

More Info

Premium Content

Leading Copper Producer Announcing ‘Drastic Cuts’

Copper is officially below $2 per pound. And that’s caused a flurry of activity in the world’s top-producing nation for the red metal.

Chile.

Concern over tumbling copper prices this week ran all the way up to Chile’s President, Michelle Bachelet. Who took the opportunity at a keynote speech to reassure Chileans that her country’s finances are not falling apart.

Speaking at the opening of Chile’s International Investment Forum 2016, Bachelet stressed the point that her government has been preparing for the possibility of lower copper prices.

She also assured Chileans that the government is managing public finances “prudently” — even as it loses an estimated $40 million in taxes with each penny the copper price falls. Related: Cheap Oil Hits Housing In North Dakota, Texas, and Others

The fact that such a high-profile official would make this speech suggests there’s a lot of concern going over Chile’s copper mining sector. A sentiment that was confirmed by officials elsewhere in the country this week.

Such as reports in local press quoting managers from Chile’s national mining society, SONAMI — who said that small copper miners in the country have been decimated, with more than 200 companies shutting down in 2015.

SONAMI officials also said that medium-scale copper miners have been pushed to the limits at today’s prices. With reports identifying at least five firms that are in a “very complex situation” because of declining mining profits.

Concern over the copper price also spread this week to Chile’s state miner, Codelco — the world’s largest copper producer. With the company’s Chairman, Oscar Landerretche, saying that cuts may be coming soon at the firm’s operations. Related: Saudi Aramco IPO More About Geopolitics Than Finance

“There will be cost adjustments, and they are coming very soon,” Landerretche told attendees at a Codelco corporate function. He added that the cuts could be “dramatic” if the copper price continues to fall.

This suggests we could see layoffs, down-sizing or even mine closures at Codelco’s operations. Landerretche noted that the company is currently evaluating the closure of its Salvador business division, which manages three copper mines — and the response to lower prices could extend beyond that.

All of which shows officials in this key copper nation are leaping into emergency mode. Watch for news on corporate changes from Codelco, and elsewhere in the Chilean mining sector.

Here’s to appropriate responses

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
Download on the App Store Get it on Google Play