The redesigning of a desalination plant at its flagship Los Pelambres mine, slated to start working within the second half of 2022, may be affected, the corporate stated, including a delay would put 50,000 tonnes copper manufacturing in danger.
Los Pelambres, situated in Chile’s Coquimbo area, 240 km north-east of Santiago, is among the firm’s operations affected by the drought. The nation’s central area alone, the place most individuals stay and which hosts key copper mines, has seen rainfall decreased by nearly 30% during the last 20 years.
The shortage of rainfall not solely is impacting miners, but additionally farmers and wine makers, which has led the authorities to reform Chile’s water code.
Regardless of the weather-related challenges, Antofagasta noticed its half-year earnings bounce to a file $2.4 billion on the again of sturdy copper costs that boosted its backside line. Hovering metallic costs additionally permit the corporate to announce an interim dividend of 23.6 cents per share, greater than triple its payout a yr in the past.
Whereas common copper costs elevated within the first half of the yr, the metallic hit on Thursday a greater than four-month low on the London Steel Alternate, as a stronger greenback weighed on investor sentiment.
Three-month copper on the LME fell by 0.4% to $9,009 a tonne, its lowest since April 14 earlier than rebounding to commerce nearly flat at $9,045 a tonne.
Key development tasks on observe
Drought not solely is impacting miners, but additionally farmers and wine makers, which has led the authorities to reform Chile’s water code.
“The climate in central Chile throughout the first half noticed unprecedentedly dry circumstances, with nearly no rainfall,” Chief Government Iván Arriagada said in a statement.
“We now have now had 12 years of drought, and the precipitation in 2021 has up to now been lower than in 2019, which itself was one of many driest years on file.”
Antofagasta’s key development tasks, nonetheless, are on observe and Arriagada stated the corporate remained centered on working self-discipline and value management.