Antofagasta slashes copper production targets

Antofagasta has slashed copper production targets as it is plagued by water shortages in drought-hit Chile.

While it generated 295,500 tons of copper during the first six months of 2023, a 10 per cent year-on-year increase, it said it needed to cut estimates for the full year.

The company lowered annual production guidance to between 640,000 and 670,000 tons, down from the previous estimate of up to 710,000 tons.

It blamed this on water shortages. Water is crucial in copper smelting and in the concentrator, where raw ore is broken down and processed.

To make matters worse, it has struggled with delays at its flagship Los Pelambres mine because of sea swells.

The project should be completed in the second half year. Cash costs were up 27 per cent in the second quarter, driven by wider inflationary pressure.

Shares in the company, which runs four mines in Chile, fell 1.4 per cent, or 20.5p, to 1486.5p.