TRIVIA

Copper has been one of the raw materials that has benefited most from the resurgence in commodity prices, which could not have come at a better time for Chile. The Chilean Copper Commission has just revised its average price forecast for the red metal upward to US$4.20 per pound for 2021, although it maintained its forecast of US$3.95 for 2022, with a 2.4% increase in demand for the metal this year. Chile is the world's largest copper producer, with 5.7 million tons per year.

How will Chile's copper production change in 2021 compared to 2020?

A) It will fall by 3.5%.

B) There will be no variation, 0%.

C) Will grow by 2.8%

ANSWER:

B) 0% –

Growth will be zero and will remain in the order of 5.7 million tons. Copper production peaked in 2018 at 5.8 million tons and has been slowly declining since then. The aging of mines is the main cause of this trend. Large investments in new projects or in the expansion of existing mines are effectively replacing the decline in production from older operations.