There are 7 copper projects delayed, expansion of Phase III Collahuasi, Hypogene Quebrada Blanca, Relincho, Inca de Oro, San Antonio oxides, Santo Domingo and Phase II Andina. The 4 gold projects are Barrick’s Pascua Lama and Cerro Casale, Goldcorp’s El Morro and Kinross Gold’s Lobo Marte.
The deferred investments are USD 38.9 billion out of the total USD 104.3 billion that was expected as of June 2012.
COCHILCO blames internal and external factors for the delays, such as the availability and cost of power supplies, more extensive environmental assessments, and difficulty obtaining building infrastructure permits. The higher costs are causing miners to re-evaluate their respective projects.
Antofagasta announced in December that it was “ditching” its Antucoya project as they were looking at a 20 percent increase in costs, primarily due to higher energy costs. Their project was to come online in 2014.
The industry was expecting to increase production from the stagnant 16 million tons seen over the last few years, with projects coming online in 2013 and 2014.
The delays will certainly mean that yearly copper production will remain flat.
