Extended lockdowns to hit copper production

Peruvian copper miner Antamina, managed by global firms BHP and Glencore, has carried out approximately 600 tests on its workers and contractors. The company reported on Monday that 210 company workers tested positive for the new coronavirus. 87% of these cases are asymptomatic. According to the company, the majority of the infected displayed mild symptoms. It is not clear when the company is able to restart operations. 

Antamina is one of the largest copper producers in Peru. The BHP and Glencore hold the company shares 33.75% each, Teck 22.5%, and Mitsubishi 10%.

Antamina, located in the Andean region of Ancash, took security measures against the coronavirus outbreak on April 13. It adapted its tasks amid the quarantine in the country.  

Before this shutdown, the company operated with a workforce of about 2,400 people. The closure allowed the demobilization of all these workers. Hence, they stayed at home under a state of emergency and immobility except for a small team that has been kept on-site for essential tasks, the company said.

Antamina reported that 17 people received medical care in clinics, and one of them remains in intensive care. The rest stay in quarantine.

Peru reported about 27,517 confirmed cases of coronavirus on Sunday, with about 728 deaths. The government of Peru has extended the period of quarantine until May 10. It is the third extension since March 15. The measures have slowed down productive activity and left millions without jobs.

Peru is the world’s second-largest copper producer. Furthermore, mining is key to the local economy, as its sales represent 60% of all the country’s exports. 

Is the production of the metal likely to decline in 2020?

The coronavirus outbreak is having a significant impact on copper production. 

In 2019, lower ore grades and production disruptions resulted in declined output by 1.9% to 20.6 million tonnes (Mt). The speculation for copper in 2020 was positive. The metal production was expected to grow by 3.4% due to a predicted rise in production. However, lockdowns caused a fall in demand and disruptions to mining activities. Thus, the expectations reduced to 1.9% to 21 million tonnes. 

Approximately 40-45% of the global copper market is from the construction sector. It is suspected to be massively impacted by the coronavirus outbreak.

According to the GlobalData, overall expectations for copper demand growth are 2.7% versus the 4.1%, which was predicted before the outbreak.