• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 14 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 24 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 12 hours Europe: The Cracks Are Beginning To Show
  • 2 hours Hong Kong protesters appeal to Trump for support.
  • 13 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 9 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 3 hours Millennials: A boil on the butt of the work ethic
  • 42 mins A little something for all you Offshore swabbies
  • 14 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 11 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 4 hours Shale profitability
  • 2 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 4 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 22 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 9 hours Let's shut down dissent like The Conversation in Australia
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

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

More Info

Premium Content

They're Giving Away Cash To Help Copper Miners Here

I wrote last week about how the copper market is starting to adjust to lower prices. With a number of significant mines closing down amid the currently-depressed market.

But news this week shows the exact opposite is happening in one of the world's most important copper-producing centers.

That's Chile. Where the government is moving to help unprofitable mining operations stay open. Related: Fed Defers Rate Hike, But Oil Fundamentals Don’t Matter Anyway

Chile's Mining Minister Aurora Williams said Tuesday that the government will give direct financial aid to copper producers. Handing out "emergency loans" to help miners weather the current market.

The loans will be given to medium-sized copper producers across the country -- those with output of less than 50,000 tonnes per year. In total, the rescue package will reportedly apply to just over 20 companies.

The amounts being loaned to these firms are substantial. Amounting to the equivalent of about 10 cents per pound of copper produced. Related: Is This The End Of The U.S Shale Gas Revolution

That could make the difference between profit and loss. A fact that the government is likely counting on, in order to curb mine shutdowns and employee layoffs in the copper mining sector that is key to Chile's economy.

While this is laudable in reducing the human costs of the current downturn, it could have some unexpected effects for copper supply. No exact details have been released on the total production from the companies qualifying for loans -- but it could be up to a million tonnes of copper metal yearly. Which will now stay on the market, even if it's technically unprofitable. Related: Oil Industry Influence Waning Amid Oil Price Slump

Moves like this could delay the recovery in the copper price that has been setting up lately. Chile's copper loans are right now being offered only for the September to December 2015 period -- so it will be critical to see if the government extends the program into 2016, if prices stay low.

Here's to a helping hand,

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